Document:

Exhibit 10.2

  EXHIBIT 10.2
  
 CHANGE IN CONTROL AGREEMENT
 This Change in Control Agreement (“Agreement”) is made and entered as of August 27, 2019 (the “Effective Date”) by and among Nuvera Communications, Inc. (the “Company”), a Minnesota corporation and Glenn Zerbe (“you”).
 RECITALS
 WHEREAS, the Board (as defined below) has determined that appropriate steps should be taken to minimize the risk that you will depart prior to a Change in Control (as defined below), thereby leaving the Company without your services during such a critical period, and 
 WHEREAS, the Board desires to reinforce and encourage your continued attention and dedication to your assigned duties without distraction in circumstances arising from the possibility of a Change in Control; and
 WHEREAS, the Board believes it important, should the Company or their shareholders receive a proposal for transfer of control, that you be able to continue your management responsibilities without being influenced by the uncertainties of your own personal situation.
 AGREEMENT
 NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, you and the Company hereby agree as follows:
 1.                  Definitions.  The following terms will have the meaning set forth below unless the context clearly requires otherwise.  Terms defined elsewhere in this Agreement will have the same meaning throughout this Agreement.
 (a)                “Accrued Obligations” means:
 (i)               Your earned base salary through the Date of Termination, to the extent not theretofore paid;
 (ii)              Your business expenses that are reimbursable pursuant to the Company policies and not previously reimbursed;
 (iii)             Your annual bonus for the previous fiscal year, if such bonus has been determined but not paid as of the Date of Termination; and
 (iv)             Any accrued vacation, sick leave or personal leave up to the limits under Company policy to the extent not theretofore paid. 
 (b)               “Base Salary” means your annualized base salary from the Company and its affiliates as in effect at the time of the consummation of the Change in Control.
 (c)                “Board” means the board of directors of the Company, duly qualified and acting at the time in question.  On and after the date of a Change in Control, any duty of the Board in connection with this Agreement shall be exercised by the board of the Successor that assumes this Agreement in connection with the acquisition of the Company.  The duties of the Board shall be nondelegable and any attempt by the Board to delegate any such duty is ineffective.
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 (d)               “Cause” means: 
 (i)               your conviction (including a plea of nolo contendere) of an act or failure to act constituting a felony or crime of moral turpitude under federal or state law; or
 (ii)              your willful misconduct with regard to the Company having a material adverse effect on the business, financial condition or reputation of the Company; or
 (iii)             your willful failure to perform substantially your duties for the Company.  
 (e)                “Change in Control” means any of the following:
 (i)               the sale, lease, exchange or other transfer, directly or indirectly, of all or substantially all of the assets of the Company, in one transaction or in a series of related transactions, to any Person;
 (ii)              any Person is or becomes the beneficial owner directly or indirectly, of more than 50 percent of the combined voting power of the Company’s outstanding securities; or
 (iii)             a merger or consolidation to which the Company is a party if the shareholders of the Company, immediately prior to the effective date of such merger or consolidation have, solely on account of ownership of securities of the Company, at such time, beneficial ownership immediately following the effective date of such merger or consolidation representing less than 50% of the combined voting power of the surviving corporation’s then outstanding securities; or
 (iv)             a change in the composition of the Board such that the individuals who, as of the Effective Date, constitute the Board cease for any reason to constitute a majority of the Board; provided, however, that for purposes of this definition, any individual who becomes a member of the Board subsequent to the Effective Date, whose election, or nomination for election, by the Company’s stockholders was approved by a vote of a least a majority of those individuals who are members of the Board and who were also members of the Board as of the Effective Date.
 (f)                “Date of Termination” means:
 (i)                if your employment is to be terminated by you for Good Reason, the date specified in the Notice of Termination, which in no event may be a date more than 15 days after the date on which Notice of Termination is given unless the Board agrees in writing to a later date;
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 (ii)              if your employment is to be terminated by the Company for Cause, the date specified in the Notice of Termination; or
 (iii)             if your employment is to be terminated by the Company for any reason other than Cause or your death, the date specified in the Notice of Termination, which in no event may be a date earlier than 15 days after the date on which a Notice of Termination is given, unless you expressly agree in writing to an earlier date.
 The Company and you will take all steps necessary (including with regard to any post-termination services by you) to ensure that any termination described in this Section 1(h) shall constitute a “separation from service” within the meaning in Treas. Reg. §1.409A-1(h) and, notwithstanding anything herein to the contrary, the date on which such separation from service occurs shall be the Date of Termination.
 (g)               “Disability” means mean any physical or mental condition which would qualify you for a disability benefit under the long-term disability plan of the Company.
 (h)               “Good Reason” means the occurrence of any of the following events without your written consent:
 (i)               a material reduction in your annual base salary or other cash compensation or your ability to participate in or to receive benefits from any welfare benefit and/or compensation plans in effect at the Company immediately prior to the Change in Control without a counter-balancing increase in another element of your welfare benefits or total compensation;
 (ii)              a material reduction in your title, duties and responsibilities with the Company as in effect immediately prior to the Change in Control or the assignment of duties what are materially inconsistent with the duties or which materially impair your ability to function in your position;
 (iii)             the Company requiring you to be based more than 35 miles from where your office is located immediately prior to the Change in Control, except for required travel on the Company's business, and then only to the extent substantially consistent with your business travel obligations on behalf of the Company during the 90-day period ending on the date of the Change in Control (without regard to travel related to or in anticipation of the Change in Control); or
 (iv)             the failure by the Company to obtain, as specified in Section 5 hereof, an assumption of the obligations of the Company to perform this Agreement by any Successor to the Company.
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 You may not terminate employment for Good Reason unless you have provided written notice to the Board of the existence of the event constituting Good Reason within 90 days of the initial existence of the event, the Company has not remedied the condition within 30 days after such notice is received, and you terminate your employment within 60 days after the end of the period of cure, if any. 
  
 Your Disability following the occurrence of an event described above in this Section 1(h) shall not affect your ability to terminate employment for Good Reason and your death following delivery of a Notice of Termination for Good Reason shall not affect your estate’s entitlement to payments and benefits provided hereunder upon a termination of employment for Good Reason. Notwithstanding the foregoing, none of the foregoing events shall be considered "Good Reason" if it occurs in connection with your death or disability.
  
 (i)                “Notice of Termination” means a written notice given on or after the date of a Change in Control that indicates the specific termination provision in this Agreement pursuant to which the notice is given.
 (j)                “Person” means any individual, corporation, partnership, group, association, other than the Company, any affiliate of the Company or any benefit plan(s) sponsored by the Company.
 (k)               “Successor” means any Person that succeeds to, or has the practical ability to control (either immediately or solely with the passage of time), the Company’s business directly or indirectly, as the result of a Change in Control of the Company or otherwise.
 2.                  Term of Agreement.  The term of this Agreement shall be the period (“Term”) beginning on the Effective Date hereof and terminating on December 31, 2022 unless extended as provided herein. The Term of this Agreement shall extend for an additional two year period (terminating on December 31, 2024) if between the 180th and 90th day before the end of the Term, the Board of the Company affirmatively approves such extension of the Term of this Agreement.  Notwithstanding the foregoing, in the event of a Change in Control during the Term, the Term of this Agreement shall automatically be extended until the later of: (i) the last day of the twelfth month after the effective date of the Change in Control, or (ii) the date on which the Company obligations to you arising under or in connection with this Agreement have been satisfied in full.
 3.                  Eligibility for Severance.  You will become entitled to the benefits described in Section 4 if and only if:  
 (a)                (i) the Company terminates your employment for any reason, other than your death, Disability or Cause; or (ii) you terminate your employment with the Company for Good Reason; 
 (b)               the Date of Termination occurs within the period beginning on: (i) the date the Company enters into a definitive agreement that will, if consummated, result in a Change in Control, if the termination is by the Company or (ii) on the date of the Change in Control, if the termination is by you for Good Reason, and ending on the last day of the twelfth month after the Change in Control; and 
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 (c)                you sign a release of claims in favor of the Company, in a form prepared by the Company, and you do not revoke or rescind your release of claims within the time period specified therein.  The Company shall provide the form of release to you on or before the 5th day following your Date of Termination. 
 4.                  Severance Benefit.  
 (a)                Subject to the conditions set forth in Section 3 and except as provided in Section 4(b), the Company will, within 60 days of your Date of Termination, make a lump-sum cash payment to you in an amount equal to two times your Base Salary. The payment under this Section 4 shall supersede and be in lieu of any rights you may have under any other policy or program of the Company providing for severance during the Term upon or after a Change in Control.
 (b)               In the event the amount to be paid under Section 4(a), together with all other payments and the value of any benefit received or to be received by you would result in all or a portion of such amount being subject to excise tax under Code §  4999 and regulations promulgated thereunder (the “Excise Tax”),  then the amount the Company shall pay you under this Section shall be such lesser amount as determined in accordance with this Section 4(b) that would result in no portion of any payment being subject to the Excise Tax. All determinations required to be made under this Section 4(b) shall be made by the Company’s outside auditor immediately prior to the Change in Control (the "Accounting Firm").  The Company shall cause the Accounting Firm to provide detailed supporting calculations of its determinations to the Company and you.  Notice must be given to the Accounting Firm within 15 business days after the Change in Control and the Accounting Firm's determination must be made within 30 days of such notice, which shall be final and binding on you and the Company.  All fees and expenses of the Accounting Firm shall be borne solely by the Company.
 5.                  Other Obligations. Within 5 days of your Date of Termination, the Company will pay you your Accrued Obligations.
 6.                  Successors.  The Company will seek to have any Successor, by agreement in form and substance satisfactory to you, assent to the fulfillment by the Company of the Company’s obligations under this Agreement.  Failure of the Company to obtain such assent at least three business days prior to the time a Person becomes a Successor (or where the Company does not have at least three business days’ advance notice that a Person may become a Successor, within three business days after having notice that such Person may become or has become a Successor) will constitute Good Reason for termination by you of your employment.  The date on which any such succession becomes effective will be deemed the Date of Termination, and Notice of Termination will be deemed to have been given on that date.  A Successor has no rights, authority or power with respect to this Agreement prior to a Change in Control. If the Successor to the Company fails to assume the obligations under this Agreement, then the Company shall be and remain liable for the obligations under this Agreement.
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 7.                  Binding Agreement.  This Agreement inures to the benefit of, and is enforceable by, you, your personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If you die while any amount would be still payable to you under this Agreement if you had continued to live, all such amounts, unless otherwise provided in this Agreement, will be paid in accordance with the terms of this Agreement to your devisee, legatee or other designee or, if there be no such designee, to your estate.
 8.                  No Mitigation.  You will not be required to mitigate the amount of any benefits the Company becomes obligated to provide to you in connection with this Agreement by seeking other employment or otherwise.  The benefits to be provided to you in connection with this Agreement may not be reduced, offset or subject to recovery by the Company by any benefits you may receive from other employment or otherwise.
 9.                  No Setoff.  The Company has no right to setoff benefits owed to you under this Agreement against amounts owed or claimed to be owed by you to the Company under this Agreement or otherwise.
 10.                Taxes and Withholding.  All benefits to be provided to you in connection with this Agreement will be subject to required withholding of federal, state and local income, excise and employment-related taxes.  You authorize the Company to withhold, report and transmit to each tax authority all income, employment and excise tax required to be withheld from any amounts payable under this Agreement.  You, and not the Company, will be solely responsible for any and all taxes, including but not limited to, excise taxes under Code §§ 280G and 409A, in excess of any required tax withholding under the preceding sentence.
 11.                Notices.  For the purposes of this Agreement, notices and all other communications provided for in, or required under, this Agreement must be in writing and will be deemed to have been duly given when personally delivered, by overnight courier (with receipt confirmed), by facsimile transmission (with receipt confirmed by telephone or by automatic transmission report) or when mailed by United States registered or certified mail, return receipt requested, postage prepaid and addressed to each party’s respective address set forth below (provided that all notices to the Company must be directed to the attention of the Chair of the Board), or to such other address as either party may have furnished to the other in writing in accordance with these provisions, except that notice of change of address will be effective only upon receipt.
 If to Nuvera Communications, Inc.: 
                         Attention: Perry Meyer
 27 North Minnesota Street
                         New Ulm, Minnesota 56073
 If to you:
 Mr. Glenn Zerbe
                         5220 Larada Lane
                         Edina, Minnesota 55436
  
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 12.                Disputes/Arbitration.  Any disputes arising under or in connection with this Agreement (including without limitation the making of this Agreement) will be settled by final and binding arbitration to be held in Minneapolis, Minnesota, in accordance with the rules and procedures of the American Arbitration Association.  If any dispute is settled by arbitration, the parties will within 10 business days select a mutually agreeable single arbitrator to resolve the dispute or if they fail or are unable to do so, each side will within the following 10 business days select a single arbitrator and the two so selected will select a third arbitrator within the following 10 business days.  The arbitration award or other resolution may be entered as a judgment at the request of the prevailing party by any court of competent jurisdiction in Minnesota or elsewhere.  The arbitrator may construe or interpret, but may not ignore or vary the terms of this Agreement, and shall be bound by controlling law.  Each party will bear its own costs and attorneys’ fees in connection with the arbitration; provided, however, that the Company will pay 100% of the costs and expenses of the arbitrator(s) and any administrative or other fees associated with such arbitration.
 13.                Related Agreements.  Nothing in this Agreement prevents or limits your continuing or future participation in any Benefit Plan provided by the Company and for which you may qualify, and nothing in this Agreement limits or otherwise affects the rights you may have under any Benefit Plans or other agreements with the Company.  Amounts which are vested benefits or which you are otherwise entitled to receive under any Benefit Plan or other agreement with the Company at or subsequent to the Date of Termination will be payable in accordance with such Benefit Plan or other agreement.
 14.                Effect of Code §409A. Notwithstanding anything to the contrary in this Agreement, to the maximum extent permitted by applicable law, the severance payments payable to you are intended and shall be interpreted to be exempt from the requirements of Code §409A in reliance upon Treas. Reg. §1.409A-1(b)(9)(iii) (relating to separation pay plans) or Treas. Reg. §1.409A-1(b)(4) (relating to short-term deferrals).  However, to the extent any such payments are treated as “non-qualified deferred compensation” subject to Code §409A and any payment otherwise specified in this Agreement or elsewhere would in the reasonable good faith determination of  the Company or you subject such amount or benefit to additional tax pursuant to Code §409A(a)(1)(B), you and the Company shall in good faith amend this Agreement to avoid or mitigate such additional tax, preserving, to the greatest extent possible, the economic value of the amount due under this Agreement.
 15.                No Employment or Service Contract.  Nothing in this Agreement is intended to provide you with any right to continue in the employ of the Company for any period of specific duration or interfere with or otherwise restrict in any way your rights or the rights of the Company, which rights are hereby expressly reserved by each, to terminate your employment at any time for any reason or no reason whatsoever, with or without Cause.
 16.                General Provisions.
 (a)               This Agreement may not be amended or modified except by a written agreement signed by you and an officer of the Company duly authorized by the Board.
 (b)               In the event that any provision or portion of this Agreement is determined to be invalid or unenforceable for any reason, the remaining provisions of this Agreement will remain in full force and effect to the fullest extent permitted by law. In the event any provision is held to be overbroad, that provision will be deemed amended to narrow its application to the extent necessary to render the provision enforceable according to applicable law.
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 (c)               This Agreement will bind and benefit the parties hereto and their respective successors and assigns.
 (d)               This Agreement has been made in and will be governed and construed in accordance with the laws of the State of Minnesota without giving effect to the principles of conflict of laws of any jurisdiction.
 (e)               No failure on the part of either party to exercise, and no delay in exercising, any right or remedy under this Agreement will operate as a waiver; nor will any single or partial exercise of any right or remedy preclude any other or further exercise of any right or remedy.
 (f)                This Agreement contains our entire understanding and agreement with respect to these matters and supersedes and replaces all other previous agreements, discussions, or understandings, whether written or oral, between or on the same subjects.
 (g)               All terms of this Agreement and intended to be observed and performed after the termination of this Agreement will survive such termination and will continue in full force and effect thereafter.
 (h)               This Agreement may be executed in multiple counterparts, each of which is an original and all of which together will constitute one and the same instrument.
 IN WITNESS WHEREOF, Nuvera Communications, Inc., by their officer duly authorized by the Board, and Glenn Zerbe have hereunto executed this Agreement as of the date and date entered above.
  
  
 	 	 NUVERA COMMUNICATIONS, INC.

	 	 	
	 Dated:  August 27, 2019
	 By:   
	 /s/Perry Meyer

	 	 	
	 	 Its:   
	 Chairman

	 	 	
	 	 	
	 	 	
	 Dated:  August 27, 2019
	 /s/Glenn Zerbe

	 	 GLENN ZERBE

  
 8Exhibit 10.3

 EXHIBIT 10.3
  
 NUVERA COMMUNICATIONS, INC.
 TRANSITION AND RETIREMENT AGREEMENT
 THIS TRANSITION AND RETIREMENT AGREEMENT  (“Transition Agreement” or “Agreement”) is made and entered into by and between Nuvera Communications, Inc., a Minnesota corporation (“Company”) and Mr. Bill Otis (“you”) and will be effective as of August 27, 2019 (“Effective Date”).
 RECITALS
 WHEREAS, you are currently the President and Chief Executive Officer of the Company under the terms your Employment Agreement with the Company dated as of July 1, 2006, as amended as of March 21, 2012 (“Employment Agreement”) and currently serve as a duly elected Director of the Board of Directors of the Company; and
 WHEREAS, the Company and you have announced your intention to retire from your positions as President and Chief Executive Officer of the Company and the Board has commenced the process of finding a successor Chief Executive Officer (“Successor CEO”); and
 WHEREAS, you and the Company mutually desire to modify your Employment Agreement and to set forth in this Transition Agreement the terms and conditions of transition and retirement from the Company, including certain transition payments and retirement benefits to you and your continued availability for services to the Company after your retirement;
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agrees as follows: 
 1.                  Transition Date; Retirement Date.  You will continue to perform your current duties as President and Chief Executive Officer of the Company until the first day of employment of the Successor CEO (“Transition Date”) and on that date, you will cease to be President and Chief Executive Officer and will be deemed to have resigned from any executive officer, board membership and fiduciary position of any employee benefit plan with the Company or any of its subsidiaries; provided, however, that you will remain a Director of the Company.  From the Transition Date until December 31, 2019 (“Retirement Date”), you will continued to be employed by the Company in the position of Senior Advisor to the Board, with such duties and responsibilities as assigned by the Board.  As of your Retirement Date, your employment with the Company will end.
 2.                  Employment Agreement.
 a.                   Prior to the Retirement Date, except as modified in Section 2(b) of this Agreement, your employment with the Company will continue to be governed by the terms and conditions of your Employment Agreement and the other policies of the Company then in effect, including but not limited to your eligibility for annual and long term incentive bonuses, subject to pro-ration in accordance with Section 5(d) of this Agreement. 
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 b.                  Company and you mutually agree that, as of the Effective Date:
 i.                    The Transition Payment set forth in Section 4 of this Agreement shall be substituted for the base salary under Section 3.A. of the Employment Agreement during the Term of the Employment Agreement and for severance benefit, if applicable, under Section 5.D. or E. of the Employment Agreement;
 ii.                  Section 2 and 5 of your Employment Agreement are modified to provide that the Employment Agreement shall terminate on your Retirement Date, without further notice or consent of either party, and except as provided in this Agreement, the Employment Agreement is of no further force and effect. 
 iii.                With respect to the transition of your position, duties and responsibilities from Chief Executive Officer to Senior Advisor on the Transition Date and the termination of your employment on your Retirement Date, neither you nor the Company will assert that either event constitutes Good Reason or a termination without Cause under the Employment Agreement.  
 c.                   The following Sections of the Employment Agreement are hereby incorporated in this Agreement and will continue in full force and effect under this Agreement without limitation: Section 6, Confidentiality and Section 9, Indemnification.
 d.                  Section 7 of the Employment Agreement is hereby incorporated in this Agreement and modified to continue in full force and effect under this Agreement for the period beginning on the Retirement Date and ending on the date 12 months after the date you attain age 65. 
 e.                   After your Retirement Date, you will only be entitled to the continuation of the Transition Payment set forth in Section 4 and the benefits set forth in Section 5 of this Agreement, and will no longer have any rights with respect to the Employment Agreement, except as expressly provided for in this Agreement. If your actual employment is extended by mutual written consent after your Retirement Date, you will be an at-will employee and not under the terms of your Employment Agreement.
 3.                  Post Retirement Services.  On your retirement Date, you will cease to be a regular, active employee of the Company.  After your Retirement Date and continuing for the period until you attain age 65, in consideration for the continuation of the Transition Payment set forth in Section 4 and other benefits set forth in Section 5, you agree to render additional services as requested jointly by the Successor CEO and the Board, after consultation with you and upon reasonable efforts to schedule such assistance so as not to materially disrupt your business and personal affairs, which services will not exceed an average of more than 20% of the hours you previously worked for the Company.
 a.                   You will work with the Successor CEO, the Board, shareholders, employees (without asserting direct influence over senior management members), customers, an appropriate industry leaders and groups to facilitate an effective transition of the leadership of the Company to the Successor CEO.  
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 b.                  At the Company’s request, and subject to your right to indemnification, you will cooperate and provide assistance to the Company in any pending or future claims or lawsuits involving the Company or any of its subsidiaries where you have knowledge of the underlying facts. 
 c.                   While you are performing these services, you are an independent contractor and are not an employee, partner, or co-venturer of, or in any other service relationship with the Company.  The manner in which you render these services will be within your sole control and discretion.  Without limiting the foregoing, you are not authorized to assume or create any obligation or responsibility, express or implied, on behalf of, or in the name of, the Company or to bind the Company in any manner without the prior express written authorization from the Company.
 d.                  The Company will pay or reimburse you in accordance with its policies for any reasonable, documented business expenses incurred in performing such services, provided the Successor CEO or the Board has agreed to such expenses in advance of any expense incurred.  Expenses that qualify for reimbursement will be paid by the Company in accordance with its current practices.
 4.                  Transition Payment. In consideration for your obligations under your Employment Agreement prior to your Retirement Date and this Agreement, the Company will pay you at a rate of $310,000 annually (“Transition Payment”), in equal installments on each regular payroll date beginning with the Company’s first regular payroll after the Effective Date, and ending with the last regular payroll in which occurs the date you attain age 65, without regard to your actual Retirement Date, subject to earlier termination as set forth in Section 4(c). For the avoidance of doubt, such Transition Payment shall be made prior to and after, and shall not be conditioned upon, a “separation from service” (within the meaning of Treas. Reg. § 1.409A-1(h)) with the Company. 
 a.                   Notwithstanding anything to the contrary, during the period in which the Transition Payments under are made and during which you serve as a Director of the Company, you agree that you shall not be eligible for, and will not receive, any compensation otherwise due to non-executive Board members under any plan or program of the Company.
 b.                  You shall not be required to mitigate the Transition Payment by seeking other employment or otherwise, nor shall the Transition Payment be reduced by any compensation you earn after your Retirement Date as the result of employment by another employer or otherwise except as provided in Sections 4(c) of this Agreement.
 c.                   The Transition Payment shall cease, and the Company shall have no further obligations to you under this Section 4, upon the earliest of the following to occur:
 i.                    Prior to your Retirement Date, your voluntary resignation or the termination of your employment by the Company for Cause as defined in the Employment Agreement;
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 ii.                  You fail to comply with or are in breach of the conditions set forth in Sections 6 and 7 of this Agreement; and
 iii.                Your death prior to your attainment of age 65.
 d.                  In the event there is a “Change in Control” of the Company (as defined in the Employment Agreement, whether or not then in effect) prior to your attainment of age 65, then the Company will, within 30 days of the consummation of the Change in Control, pay you, in a single lump sum, less any required withholding for taxes, the aggregate of:
 i.                    remaining installments of the Transition Payment; and
 ii.                  the unpaid amounts set forth in Section 5(a), (b) and (d) of this Agreement. 
 5.                  Payments and Benefits upon Retirement.  
 a.                   Accrued Amounts. Upon your Retirement Date, the Company will pay you your accrued but unpaid Personal Time Off (“PTO”) up to a maximum of 10 weeks and 50% of your accrued but unpaid sick leave as of your Retirement Date, under the Company’s policies for employee retirements.
 b.                  Health Care Continuation Coverage.  Upon your Retirement Date, you will be eligible to elect continued group health care coverage, as otherwise required under the Consolidated Omnibus Budget Reconciliation Act of 1986, 29 U.S.C. §§ 1161-1168; 26 U.S.C. § 4980B(f), as amended, all applicable regulations (referred to collectively as “COBRA”) and applicable state continuation law under any group health care plan maintained by the Company for which you are enrolled on your Retirement Date. 
 i.                    Upon your election of COBRA and subject to the conditions set forth in Section 6, after your Retirement Date the Company will continue to pay its share of the health care premiums for your continuation coverage, and you will be obligated to pay your share of the premiums associated with such coverage as if you were still actively employed by the Company. Provided you continue to be eligible for such COBRA coverage, the Company’s obligation under this subsection (i) will continue for a period of 18 months after the Retirement Date but not later than the earlier of the month you attain age 65 or your death, and only to the extent such payment does not result in any additional tax or other penalty being imposed on the Company or you or violate any nondiscrimination requirements then applicable with respect to such payments.
 ii.                  If, during the 18-month period, you become employed by a third party and eligible for any health care coverage provided by that third party, the Company will not, thereafter, be obligated to continue to pay the amount in subsection (i) above. You must notify the Company of any subsequent employment and provide information with respect to any third party health care coverage for which you are eligible.
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 iii.                If, after the 18-month period and before you attain age 65, you are not employed by a third party and are not eligible for any health care coverage provided by that third party, the Company will, in addition to the Transition Payment, pay to you as taxable compensation each payroll period, an amount equal to the Company portion of the premium cost for similar health insurance coverage for active employees (including any increase or decrease) during the period up to and including the month you attain age 65.  Other than this continued subsidy, you will be responsible for obtaining and paying the full cost of any health care coverage after the end of the 18-month period.
 c.                   Other Insurance. All other insurance and benefits provided by the Company, including but not limited to, Business Travel Accident Insurance, Accidental Death and Dismemberment Insurance, and Short-Term and Long-Term Disability Insurance will terminate at midnight on the Retirement Date.
 d.                  Incentive Compensation.  On your Retirement Date, you will continue to be eligible for the following awards, which shall be paid to you within 30 days of your Retirement Date:
 i.                    your 2017 time based and performance based, at target, restricted stock unit awards, if unpaid; and
 ii.                  your 2019 annual cash bonus under the Management Incentive Plan, at target, if unpaid; and
 iii.                100% of your 2018 and 2019 time-based restricted stock awards; and 
 iv.                a pro-rata portion of 2018 and 2019 performance-based restricted stock awards and any future incentive awards based upon the ratio of the number of days in the applicable performance period up to the later of: (x) December 31, 2019 or (y) your Retirement Date, over the total number of days in the applicable performance period and assuming target performance, waiving any condition for continuous employment.
 Except as provided in this Section 5(d), all other unvested and unearned restricted stock units and annual bonus will immediately terminate and be forfeited without payment therefor. After your Retirement Date, you will no longer be eligible for any new annual or long term incentive compensation.
 e.                   401(k) Retirement Savings Plan. You will be entitled to a distribution from your account in the Company’s qualified 401(k) Retirement Savings Plan and Trust.  You will receive information and forms for this purpose from Human Resources within two weeks of the Retirement Date.
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 f.                   Other Benefits.  Except as provided in the Agreement, your rights following termination of employment with respect to any other benefits pursuant to the terms of any plan, program or arrangement not addressed in this Agreement shall be subject to the terms of such plan, program or arrangement.
 g.                  Retention of Devices.  You may retain for your personal use, at no purchase cost to you, the iPad, cell phone and laptop currently in your possession, provided you make those available to the Company at your Retirement Date, to allow the Company to remove any Company confidential information and access to Company computer systems and data, as required of terminated employees generally.
 h.                  Purchase of Auto.  You may elect to purchase your current Company-provided auto at the then current book value reported on the Company’s financial statements.
 6.                  Conditions to Payments.
 a.                   The payments and benefits provided in Sections 4 and 5(b) after your Retirement Date will only be payable to you if you have executed the General Release of Claims set forth in Exhibit A to this Agreement at the time of your Retirement Date and you have not rescinded the General Release of Claims during the recession period set forth in the Agreement.
 b.                  Notwithstanding anything herein to the contrary, the Company will have the right to reduce amounts payable to you or to recover amounts previously paid by the Company to you, whether pursuant to this Agreement or otherwise, to the extent required under any federal or state law or regulation regarding clawbacks of payments to certain executive officers, or pursuant to any policy of the Company in effect on your Retirement Date.
 c.                   In the event you are in breach of any provision of this Agreement, including but not limited to the restrictions under Sections 6 and 7 of the Employment Agreement (as modified by this Agreement), then in addition to any other remedies available to the Company, you will forfeit any further payments under Sections 4 and 5(b) and the Company may seek repayment of any amounts previously paid to you under Sections 4 and 5(b) with respect to any prior period in which such breach existed.

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7.                  Standstill Provisions; Nondisparagement. 
 a.                   You agree that, until the date you attain age 65, unless invited (on an unsolicited basis) by the Board of Directors of the Company in writing and other than in your fiduciary capacity as a Director, you will not: 
 i.                    acquire, offer or propose to acquire, or agree or seek to acquire, directly or indirectly, by purchase or otherwise, any additional securities or direct or indirect rights or options to acquire any securities of the Company or any subsidiary thereof, or of any successor to or Person (defined to include any natural person, governmental authority, corporation, company, limited liability company, partnership, joint venture, trust, or other entity of any kind) in control of the Company, or any assets of the Company or any subsidiary or division thereof, or of any successor to or Person in control of the Company; 
 ii.                  enter into or agree, offer, propose or seek to enter into, or otherwise be involved in or part of, directly or indirectly, any acquisition transaction or other business combination relating to all or part of the Company or its subsidiaries or any acquisition transaction for all or part of the assets of the Company or any subsidiary of the Company  or any of their respective businesses;
 iii.                 make or in any way participate in directly or indirectly any “solicitation” or “proxy” (as such terms are used in the rules of the Securities and Exchange Commission) to vote, or seek to advise or influence any Person with respect to the voting of, any voting securities of the Company; provided, however, that nothing in this Section 7 shall prohibit you from private discussions with then current Board members, including members of the Nominations Committee, concerning your interest in or future nomination or election as a Board member at or after your current term as a Board member expires;
 iv.                form, join or in any way participate in a “group” (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) with respect to any voting securities of the Company or any of its subsidiaries; 
 v.                  seek or propose, alone or in concert with others, to influence or control the management or policies of the Company or any of its subsidiaries;
 vi.                directly or indirectly enter into any discussions, negotiations, arrangements or understandings with any other Person with respect to any of the foregoing activities or propose any such activities to any other Person;
 vii.              advise, assist, encourage, act as a financing source for or otherwise invest in any other Person in connection with any of the foregoing activities; or 
 viii.            disclose any intention, plan or arrangement inconsistent with any of the foregoing restrictions.  
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 b.                  You also agree that, during the period referred to in Section 7(a), neither you nor any of your affiliates will: 
 i.                    request the Company or its advisors, directly or indirectly, to (A) amend or waive any provision of this Section 7 (including this sentence) or (B) otherwise consent to any action inconsistent with any provision of this paragraph (including this sentence); or 
 ii.                  take any initiative with respect to the Company or any of its affiliates that could require the Company or any of its affiliates to make a public announcement regarding (A) such initiative, (B) any of the activities referred to in the first sentence of this paragraph, (C) the possibility of you or any other Person acquiring control of the Company, whether by means of a business combination or otherwise.
 c.                   You agree not to do anything that would damage the Company’s business reputation or goodwill, and will refrain from making any negative, critical or disparaging statements, express or implied, concerning the Company or its officers or directors.
 d.                  You acknowledge that irreparable damage may occur to the Company in the event any of the provisions of this Section 7 were not performed in accordance with their specific terms or were otherwise breached.  Accordingly, the Company will  be entitled to seek an injunction or injunctions to prevent breaches or threatened breaches of the provisions of this Agreement and to seek to enforce specifically the terms and provisions hereof in any court of competent jurisdiction in the United States of America, in addition to any other remedy to which the Company may be entitled at law or in equity.
 8.                  Legal and Financial Planning Expenses.  The Company will pay you, upon reasonable documentation in accordance with the Company policies, up to $5,000, for expenses you incur for personal financial planning and legal advice in connection with the negotiations of this Agreement, subject to tax withholding, if applicable.
 9.                  General Provisions.
 a.                   Amendments.  This Agreement may not be amended or modified except by a written agreement signed by both parties.
 b.                  Severability.  In the event that any provision or portion of this Agreement is determined to be invalid or unenforceable for any reason, the remaining provisions of this agreement will remain in full force and effect to the fullest extent permitted by law.
 c.                   Successors and Assigns.  This Agreement will bind and benefit the parties hereto and their respective successors and assigns, but none of your rights or obligations hereunder may be assigned by either party hereto without the written consent of the other, except by operation of law upon your death.
 d.                  Dispute Resolution. Any disputes arising under or in connection with this Agreement must be resolved by final and binding arbitration as provided for in Section 8 of the Employment Agreement, which is incorporated in this Agreement.

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 e.                   Tax Withholding; Code 409A.  The Transition Payment shall be reported as compensation and to the extent required, as “nonqualified deferred compensation” subject to Code § 409A and regulations promulgated thereunder.  The Transition Payment and other benefits to be provided to you in connection with this Agreement may be subject to required withholding of federal, state and local income, excise and employment-related taxes, and other deductions for benefits and other expenses. This Agreement and the payments and benefits provided, shall, to the greatest extent permitted by law be exempt from the requirements applicable to deferred compensation under Code § 409A and regulations promulgated thereunder, and to the extent not otherwise exempt,  you and the Company intend that this Agreement comply with the requirements of Code § 409A and agree to administer and interpret this Agreement in manner consistent with, and that gives effect to, such intention. 
 f.                   Notices.  Any notice or other communication under this Agreement must be in writing and will be deemed given when delivered in person, by overnight courier (with receipt confirmed), or upon receipt if sent by certified mail, return receipt requested, as follows (or to such other persons or addresses as may be specified by written notice to the other party):
 If to the Company:
  
 Nuvera Communications, Inc.
 Attention:  Chairman of the Board of Directors 
 27 North Minnesota Street
 New Ulm, Minnesota 56073
  
 If to you:
  
 Mr. Bill Otis
 19712 KC Road
 New Ulm, Minnesota 56073
  
 g.                  Entire Agreement.  Except as expressly provided for in this Agreement, the Agreement constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes and terminates the Employment Agreement in the times and in the manners hereinabove and supersedes and terminates all other prior agreements with respect to the subject matter hereof.
 h.                  Governing Law.  This Agreement has been made in and will be governed and construed in accordance with the laws of the State of Minnesota without giving effect to the principles of conflict of laws of any jurisdiction.

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 IN WITNESS WHEREOF, you and a duly authorized officer by and on behalf of the Company have executed this Agreement as of the dates set forth below.
  
 NUVERA COMMUNICATIONS, INC.
  	 By:  
	 /s/Perry Meyer
	 	 /s/Bill Otis

	 Its Chairman
	 	 Bill Otis

	 	 	 	
	 Date: August 27, 2019
	 	 Date: August 27, 2019

  
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 Exhibit A
  
 GENERAL RELEASE OF CLAIMS
 THIS GENERAL RELEASE OF CLAIMS (“Release”) is made and entered into by Mr. Bill Otis (“you”) upon your Retirement Date (as set forth in the Transition and Retirement Agreement between you and Nuvera Communications, Inc. (“Company”), dated as of                              , 2019 (“Agreement”)) and will be effective as set forth below.
 1.                General Release of Claims.  In consideration for the payment and benefits provided in Sections 4 and 5(b) of the Agreement, you agree to release, agree not to sue, and discharge the Company, its affiliates, and its related entities, officers, directors, shareholders, agents, employees, successors and assigns, from any and all manner of claims, demands, actions, causes of action, administrative claims, liability, damages, claims for punitive or liquidated damages, claims for attorneys’ fees, costs and disbursements, individual or class action claims, or demands of any kind whatsoever, you may have or might have against them or any of them, whether known or unknown, in law or equity, contract or tort, arising out of or in connection with your employment, or the termination of that employment, or otherwise, and however originating or existing, from the beginning of time through the date of your signing this Release.  This Release includes, without limiting the generality of the foregoing, any claims you may have for wages, bonuses, commissions, penalties, deferred compensation, vacation pay, separation pay and/or benefits, defamation, improper discharge (based on contract, common law, or statute, including any federal, state or local statute or ordinance prohibiting discrimination or retaliation in employment), the Minnesota Human Rights Act, Title VII of the Civil Rights Act of 1964, as amended;  the Age Discrimination in Employment Act as amended by the Older Workers Benefit Protection Act; the Americans with Disabilities Act, as amended; and any claim for discrimination or retaliation based on a protected class under state or federal law.  You hereby waive any and all relief not provided for in the Agreement.
 2.                Pending or Future Proceedings.  You affirm that you have not caused or permitted, and to the full extent permitted by law will not cause or permit, to be filed (to the extent that you are able to control such filing), any charge, complaint, or action of any nature or type against Company and its successors and assigns, including but not limited to any action or proceeding raising claims arising in tort or contract, or any claims arising under federal, state or local laws, including discrimination laws.
 3.                Exclusions.  Notwithstanding the release of claims otherwise provided for in this Release, you expressly understand that nothing in the Agreement or this Release will prevent you from filing a charge of discrimination with the EEOC or any of its state or local deferral agencies, or participating in any investigation by the EEOC or any of its state or local deferral agencies, although you understand that by signing this Release you are waiving the right to recover any damages or to receive other monetary relief or reinstatement to employment with Company in any claim or suit brought by or through the EEOC or any other state or local deferral agency on your behalf. Notwithstanding anything in this Release, you are not waiving the right to report possible securities law violations to the Securities and Exchange Commission or other governmental agencies or the right to receive any resulting whistleblower awards.
 A - 1
  
 
  
Exhibit A
  
 4.                Exceptions.  Nothing in this Release shall limit or otherwise impair your right to receive pension or similar benefit payments under any tax qualified plan or any other benefits accrued as of your Retirement Date or to which you are entitled in accordance with the terms of such benefit plan, to any rights you have under the Agreement, nor to indemnification in accordance with Section 9 of your Employment Agreement.
 5.                Representations.  You affirm that you are not presently aware of any injury for which you may be eligible for workers’ compensation benefits.  You have not made any claim for illness or injury against the Corporation, and you are not aware of any facts supporting any claim against Company for medical expenses that have been or may be incurred by you.  You represent and warrant that you are is not enrolled in the Medicare program, have not been enrolled in the Medicare program at the time during employment with Company, and have not received Medicare benefits for medical services or items related to any claims arising out of employment with Company.  You further represent and warrant that no Medicaid payment have been made to or on behalf of you, and no liens, claims, demands, subrogated interests, or causes of action of any nature or character exist or have been asserted arising from or related to employment with Company.  You agree that you, and not Company, is responsible for satisfying all such liens, claims, demands, subrogated interests, or causes of action that may exist or have been asserted or that may in the future exist or be asserted.  You represent and warrant that you have not assigned or transferred or purported to assign or transfer any claim against Company.
 6.                Recession. You acknowledge that you have a right to rescind within seven (7) calendar days of signing this Release to reinstate federal claims under the Age Discrimination in Employment Act and within fifteen (15) days of signing this Release to reinstate claims under the Minnesota Human Rights Act.  In order to be effective, the rescission must: (a) be in writing; and (b) delivered to  Nuvera Communications, Inc. – Attn: Human Resources Manager, by hand or by mail at 27 North Minnesota Street, New Ulm, Minnesota 56073 within the required period; and (c) if delivered by mail, the rescission must be postmarked within the required period, properly addressed to Company and sent by certified mail, return receipt requested. This Release will be effective upon the expiration of the fifteen (15) day period without rescission.  You understand that if you rescind this Release, you will not receive the amounts described in Section 4 of the Agreement.
 7.                Consideration Period.  You have the right to review this Release with an attorney of your choosing.  You have twenty-one (21) days from the date you receive this Release to consider whether you wish to sign it.  You acknowledge that if you sign this Release before the end of the twenty-one (21) day period, it is your voluntary decision to do so, and you waive the remainder of the twenty (21) day period.  Notwithstanding the foregoing, you must not sign this Release prior to your Retirement Date.
 8.                Governing Law.  The parties agree that Minnesota law will govern the construction and interpretation of this Release.
  
A - 2
 
 
   
 
Exhibit A
 IN WITNESS WHEREOF, Bill Otis has executed and delivered this General Release as of the date set forth below. 
  
  
 	 	  /s/Bill Otis

	 	 Bill Otis
	
	 	 	 
	 	 Date:  
	 August 27, 2019

  
 A - 3

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