Document:

Exhibit 10.1

 

Anika Therapeutics, Inc.

32 Wiggins Avenue

Bedford, Massachusetts 01730

 

	 	February 25, 2020

 

Dr. Cheryl R. Blanchard

[●]

 

Dear Cheryl:

 

On behalf of Anika
Therapeutics, Inc. (the “Company”), I am pleased to provide you with this letter agreement (this “Agreement”)
setting forth the principal terms of the compensation package to be provided to you by the Company for your services as Interim
Chief Executive Officer of the Company (“Interim CEO”), which appointment was effective as of February 10, 2020
and will continue through the period set forth in Section 2 (the “Term”).

 

		1.	Duties. During the Term, you will have all of the duties, responsibilities and authority
commensurate with the position of Chief Executive Officer, including such duties, responsibilities and authority set forth in the
Company’s Certificate of Incorporation and Bylaws and such duties, responsibilities and authority as are customary for executives
with the same or similar roles in companies of similar sizes and structures. You will have an office at the Company’s corporate
headquarters located in Bedford, Massachusetts for use during the Term on an as-needed basis. You agree to serve the Company faithfully,
diligently and competently, and to devote your full working time, energy and skill to the Company’s business. Notwithstanding
the foregoing, you will be permitted to:

 

		(a)	continue to serve as a member of the public or private company boards of directors on which you
currently serve; and

 

		(b)	serve in any capacity with any professional, educational, philanthropic, public interest, charitable
or community organization;

 

provided that such activities
do not at the time the activity or activities commence or thereafter (i) create an actual or potential business or fiduciary
conflict of interest or (ii) individually or in the aggregate, interfere materially with the performance of your duties to the
Company.

 

You will continue as a member
of the Company’s Board of Directors (the “Board”), although you will not be eligible to receive any cash
compensation, equity awards or other compensation with respect to your continuing service on the Board during the Term. It is understood
that neither your employment as Interim CEO nor any other term of this Agreement will interfere with the vesting of equity awards
previously issued to you in connection with your service as a member of the Board. During the Term you will not be eligible to
serve on any of the standing committees of the Board for which members are required to be “independent” within the
meaning of the rules and regulations of the Securities and Exchange Commission or The Nasdaq Stock Market (that is, the Audit Committee,
the Compensation Committee, and the Governance and Nominating Committee). After the Term, your service as a member of any Board
committee will be determined by the Board, subject to compliance with the applicable rules and regulations of the Securities and
Exchange Commission and The Nasdaq Stock Market.

 

		2.	Term. The Term will continue until the earliest of (a) the effective date of the appointment
of a permanent Chief Executive Officer, (b) August 7, 2020, (c) a Change in Control as defined in the Company’s
2017 Omnibus Incentive Plan, and (d) such date as of which either the Company or you elect to terminate your employment as
Interim CEO.

     

     

    

		3.	Compensation.

 

		(a)	Base Salary. The Company will pay you a base salary at an annualized rate of $600,000 for
your services during the Term, less applicable withholdings for taxes, payable in accordance with the Company’s customary
payroll practices from time to time in effect, provided that upon the end of the Term for any reason other than your election
to terminate employment, you will be entitled to receive, in the next succeeding payroll run, an additional payment equal to the
amount, if any, by which your total base salary earned during the Term totals less than $150,000.

 

		(b)	Cash Retention Awards. The Company will pay to you in cash (i) if you do not elect
to terminate employment prior to May 10, 2020, the amount of $127,500, which amount will be payable in the first payroll run occurring
after the earlier of May 10, 2020 and the end of the Term, and (ii) if the Term continues after May 10, 2020 and you do not
elect to terminate employment prior to August 7, 2020, an amount equal to 85% of your total base salary earned from May 10, 2020
through the end of the Term, which amount will be payable in the first payroll run occurring after the end of the Term.

 

		(c)	Additional Monthly Payments. The Company will make a monthly payment to you in the amount
of $3,448.28 with respect to each month during the Term, in lieu of your participation in the Company’s healthcare plan.
This monthly payment will be made initially in the last payroll run of February 2020 and then in the first payroll run of each
subsequent partial or full month during the Term (that is, you will be eligible to receive such a monthly payment with respect
to February 2020 and each subsequent month for which you are employed as Interim CEO as of the first calendar day of that month).
Notwithstanding the foregoing, you may elect in writing at any time, in your discretion and subject to compliance with related
eligibility requirements, to begin participating in the Company’s healthcare plan effective as of the first calendar day
of a month during the Term and to waive any subsequent monthly payments under this paragraph.

 

		(d)	Equity Award. As of the date of this Agreement, the Company is granting to you, pursuant
to its 2017 Omnibus Incentive Plan, restricted stock units with respect to 4,231 shares of the Company’s common stock, par
value $0.01 per share, which shall vest in full and settle as of the earlier of (i) immediately prior to the end of the Term,
so long as the Term does not end as the result of your election to terminate employment, and (ii) February 25, 2021, so long
as you continue to serve on the Board as of such date.

 

		(e)	Reimbursements. The Company will reimburse you for (i) up to $3,000 for legal fees
and expenses incurred by you in connection with your initial employment as Interim CEO, including the review of this Agreement
and the related term sheet, payable promptly after execution of this Agreement and submission of related documentation, and (ii)
all reasonable out-of-pocket business, entertainment and travel expenses in connection with the performance of your duties under
this Agreement that are incurred and submitted in accordance with the Company’s expense reimbursement policy from time to
time in effect or with other guidelines or requirements approved by a majority of the disinterested members of the Board.

 

		(f)	Benefits. During the Term and subject to Section 3(c) above, you will be entitled to
participate in such privileges, including paid time off, and in such insurance and other benefit programs (excluding the Company’s
long-term incentive programs) as are generally made available to the Company’s senior executives, to the extent you meet
the eligibility requirements for such privileges and programs.

 

		4.	At-Will Employment. Your employment with the Company will be “at-will” and may
be terminated by you or the Company at any time, upon at least two weeks’ written notice, for any (or no) reason.

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		5.	Confidential Information and Company Records.

 

		(a)	Confidentiality. During the Term, and continuing thereafter, you agree that you will not,
whether alone or in association with any other person, directly or indirectly, knowingly divulge, furnish or make accessible to
any third person or organization other than in the regular course of the Company’s business any confidential information
concerning the Company or its subsidiaries or its or their business, including confidential methods of operation and organization,
confidential sources of supply and customer or other mailing lists.

 

		(b)	Records. All records, files, documents and the like, or abstracts, summaries or copies thereof,
relating to the business of the Company or the business of any subsidiary, which the Company or you prepare or use or come into
contact with, will remain the sole property of the Company or the subsidiary, as the case may be, and will be promptly returned
upon termination of the Term or at such earlier time as may be requested by the Board.

 

		(c)	Enforcement. The provisions of this Section 5 shall survive the end of the Term. You
acknowledge that any remedy at law for a breach or threatened breach of any of the provisions of this Section 5 may be inadequate
and that accordingly the Company shall be entitled to an injunction or specific performance or any other mode of equitable relief
without the necessity of showing any actual damage, posting a bond or furnishing other security.

 

		6.	Non-Competition and Non-Solicitation. During the Term and for one year after the Term, you
will not directly or indirectly:

 

		(a)	engage or assist others in engaging in any business or enterprise (whether as owner, partner, officer,
director, employee, consultant, investor, lender or otherwise, except as the holder of not more than one percent of the outstanding
stock of a publicly held company) that is competitive with the Company’s business in that it develops, manufactures, markets,
licenses, sells or provides the following products within the osteoarthritis space: (i) products competing with hyaluronic
acid or indicated for ortho-viscosupplementation products sold or in development by the Company; or (ii) non-hyaluronic acid
products competing directly with non-hyaluronic acid products sold or in development by the Company; or

 

		(b)	either alone or in association with others, solicit, divert or take away, or attempt to divert
or take away, the business or patronage of any of the clients, customers, or business partners of the Company that were contacted,
solicited, or served by you directly or the Company during the 12-month period prior to the termination or cessation of your employment
with the Company; or

 

		(c)	either alone or in association with others (i) solicit, induce or attempt to induce, any employee
or independent contractor of the Company to terminate his or her employment or other engagement with the Company or (ii) hire,
or recruit or attempt to hire, or engage or attempt to engage as an independent contractor, any person who was employed or otherwise
engaged by the Company at any time during the term of your employment with the Company; provided that this clause (ii) shall
not apply to the recruitment or hiring or other engagement of any individual whose employment or other engagement with the Company
has been terminated.

 

Notwithstanding the foregoing,
this Section 6 shall not preclude you from becoming, during the year after the Term, an employee of, or from otherwise providing
services to, a separate division or operating unit of a multi-divisional business or enterprise (a “Division”)
if: (i) the Division by which you are employed, or to which you provide services, is not competitive with the Company’s business;
(ii) you do not provide services, directly or indirectly, to any other division or operating unit of such multi-divisional business
or enterprise that is competitive with the Company’s business (collectively, the “Competitive Divisions”);
and (iii) such Competitive Division or Divisions, in the aggregate, accounted for less than one-quarter of the consolidated revenues
of the multi-divisional business or enterprise for the fiscal year, and each subsequent quarterly period, prior to commencement
of your employment with the Division.

    	 	3	 

     

    

		7.	Company Policies. You will be bound by and comply fully with the Company’s standard
confidentiality agreement (a form of which was been provided to you), insider trading policy, code of business conduct and ethics,
conflict of interest policy, communications policies, and any other policies and programs adopted by the Company regulating the
behavior of its employees, as such policies and programs may be amended from time to time to the extent the same are not inconsistent
with this Agreement.

 

		8.	Indemnification. To the maximum extent permitted by law, you will be indemnified under the
Company’s Certificate of Incorporation and Bylaws while serving as Interim CEO, and you will continue to be named as an insured
on the director and officer liability insurance policy currently maintained by the Company, or as may be maintained by the Company
from time to time.

 

		9.	Miscellaneous.

 

		(a)	Notices. Notices under this Agreement must be in writing and will be deemed to have been
given when personally delivered or two days after mailed by U.S. registered or certified mail, return receipt requested and postage
prepaid. Mailed notices to you will be addressed to you at the home address that you have most recently communicated to the Company
in writing. Notices to the Company will be addressed to the Chair of the Board at the Company’s corporate headquarters. Either
party hereto may change its address for the purpose of this Section 9(a) by written notice similarly given.

 

		(b)	Successors. This Agreement is binding on and may be enforced by the Company and its successors
and permitted assigns and is binding on and may be enforced by you and your heirs and legal representatives. Any successor to the
Company or substantially all of its business (whether by purchase, merger, consolidation or otherwise) will in advance assume in
writing and be bound by all of the Company’s obligations under this Agreement and shall be the only permitted assignee.

 

		(c)	Waiver. No provision of this Agreement may be modified or waived except in writing signed
by you and a duly authorized officer of the Company.

 

		(d)	Severability. The invalidity, illegality or unenforceability of any provision or provisions
of this Agreement shall not affect any other provision of this Agreement, which shall remain in full force and effect, nor shall
the invalidity, illegality or unenforceability of a portion of any provision of this Agreement affect the balance of such provision.
In the event that any one or more of the provisions contained in this Agreement or any portion thereof shall for any reason be
held to be invalid, illegal or unenforceable in any respect, this Agreement shall be reformed, construed and enforced as if such
invalid, illegal or unenforceable provision had never been contained in this Agreement.

 

		(e)	Survival. The provisions of this Agreement shall survive the termination of your employment
for any reason to the extent necessary to enable the parties to enforce their respective rights under this Agreement.

    	 	4	 

     

    

		(f)	Entire Agreement. This Agreement constitutes the entire understanding and agreement between
you and the Company regarding your service as Interim CEO. This Agreement supersedes all prior negotiations, discussions, correspondence,
communications, understandings and agreements between you and the Company relating to such service.

 

		(g)	Modifications. This Agreement may not be modified or amended, nor may any rights under it
be waived, except in a writing signed and agreed to by both you and a majority of the disinterested directors of the Company.

 

		(h)	Interpretation. For purposes of this Agreement:

 

		(i)	headings used in this Agreement are for convenience of reference only and shall not, for any purpose,
be deemed a part of this Agreement;

 

		(ii)	the word “including” as used in this Agreement shall not be construed so as to exclude
any other thing not referred to or described; and

 

		(iii)	this Agreement shall be construed without regard to any presumption or rule requiring construction
or interpretation against the party drafting an instrument or causing any instrument to be drafted.

 

		(i)	Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE COMMONWEALTH OF MASSACHUSETTS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE, WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW.

 

If the foregoing correctly sets forth your
understanding of our agreement, please so indicate by signing and returning to us a copy of this Agreement.

 

	 	Anika Therapeutics, Inc.
	 	 
	 	 
	 	By:	/s/ Sylvia Cheung
	 	 	Chief Financial Officer

 

Accepted and agreed:

Cheryl R. Blanchard

 

 

/s/ Cheryl R. Blanchard

 

 

5Exhibit

2020 EXECUTIVE PERFORMANCE RSU AWARD AGREEMENT
This Executive Performance RSU Award Agreement (the “Agreement”) is hereby entered effective as of _____________, 2020 (the “Award Date”), by and between Fuel Tech, Inc. (the “Company” or “Fuel Tech” or “FTI”), and _________________ (the “Participant”).  Any term capitalized but not defined in this Agreement will have the meaning set forth in the Fuel Tech, Inc. 2014 Long-Term Incentive Plan, as it may be amended, modified or restated from time to time (the “Plan”).  
1.Purpose.  The purpose of this Agreement is, among other things, to align the Participant’s interests with the interests of the Company and its stockholders in the long-term growth of the Company and to reward the Participant for his or her continued employment and service to the Company in the future and his or her compliance with the Company’s policies (including, without limitation, the Company’s Code of Business Ethics and Conduct), to protect the Company’s interests in non-public, confidential and/or proprietary information, products, trade secrets, customer relationships, and other legitimate business interests.  In view of these purposes, this Agreement, issued pursuant to Section 9 of the Plan, provides the Participant the opportunity to receive an executive performance RSU award in the manner and on the terms, conditions and amounts set forth in this Agreement (“Executive Performance RSU”).
2.    Executive Performance RSU Award.  For purposes of the Executive Performance RSU Award calculations set forth below in this Agreement, the Committee, in the exercise of its business judgment under the Plan, approved a total target number of executive performance RSUs of ________ (“Target RSU Amount”).  The Committee shall award the Participant a number of RSUs from zero and up to 133.33% of the Target RSU Amount on the Determination Date (which, for clarification, is after the completion of the Performance Period) based on the Operating Income for the Performance Period (as defined in Section 21).
(a)    Operating Income Measurement.  Following the completion of the Performance Period, the Committee will determine the Operating Income for the Performance Period and shall approve the issuance to the Participant a number of Executive Performance RSUs, determined as follows: 
(i)    If the Company’s Operating Income for the Performance Period is less than $1,000,000, no Executive Performance RSUs will be awarded.
(ii)    If the Company’s Operating Income for the Performance Period is at least $1,000,000 and less than $2,000,000, then a number of Executive Performance RSUs equal to two-thirdsof the Target RSU Amount will be awarded.
(iii)    If the Company’s Operating Income for the Performance Period is at least $2,000,000 and less than $3,000,000, then a number of Executive Performance RSUs equal to 100% of the Target RSU Amount will be awarded.

(iv)    If the Company’s Operating Income for the Performance Period equals or exceeds $3,000,000, then a number of Executive Performance RSUs equal to 133.33% of the Target RSU Amount will be awarded.
(v)    The number of Executive Performance RSUs awarded pursuant to this Section 2(a) will be determined based on straight line interpolation if the Operating Income for the Performance Period is between the amounts listed above (e.g., if Operating Income is $1,500,000, then a number of Executive Performance RSUs equal to 83.335% of the Target RSU Amount will be awarded).
(b)    Determination Date.  Any Executive Performance RSU awards made as a result of the Company’s Operating Income will be made on the Determination Date, subject to the terms and conditions of the Plan and this Agreement, including the vesting schedule set forth in Section 2(d) below, provided that the Participant’s Continuous Service has not terminated before the Determination Date (except as provided in subsections (c) and (e) below).
(c)    Termination of Continuous Service.  
(i)    If the Participant’s Continuous Service terminates for any reason before the Determination Date, other than the Participant’s (A) termination by the Company without Cause, (B) death, or (C) Disability, no Executive Performance RSUs will be awarded to the Participant, except as provided in Section 2(e) below.  
(ii)    If, before the Determination Date, the Participant’s Continuous Service is terminated by the Company without Cause, or due to death or Disability, the Participant will be awarded a number of vested Executive Performance RSUs on the Distribution Date equal to the product obtained by multiplying “X” by “Y” where “X” equals the number of Executive Performance RSUs such Participant would have been entitled to receive had such Participant remained in Continuous Service until the Determination Date and “Y” equals a fraction, the numerator of which is the number of days of Continuous Service during the Performance Period the Participant had completed as of the date of his or her termination of Continuous Service and the denominator of which is 365. 
(iii)    If the Participant’s Continuous Service terminates on or after the Determination Date, but before the Executive Performance RSUs have fully vested under Section 2(d) or (e) below:
A.If the Participant’s Continuous Service is terminated by the Company for Cause, the Participant will forfeit all Executive Performance RSUs, including any Executive Performance RSUs that have vested under Section 2(d).
B.    If the Participant terminates Continuous Service due to death or Disability, the Participant will vest in any Executive Performance RSUs that have not vested under Section 2(d) or (e), and the Company will distribute Shares to the Participant equal to the full number of Executive Performance RSUs that were awarded to the Participant in accordance with Section 3 below.
C.    If the Participant’s Continuous Service is terminated other than (A) due to death or Disability, or (B) by the Company for Cause, the Participant will forfeit any Executive Performance RSUs that have not vested under Section 2(d) or (e), and the Company will distribute Shares to the Participant equal to the number of Executive Performance RSUs that already have vested in accordance with Section 3 below.
(d)    Installment Vesting.  Any Executive Performance RSUs awarded on the Determination Date shall vest in three installments, as follows:  (i) one-third of the total Executive Performance RSUs awarded shall vest on the first anniversary of the Award Date, (ii) one-third of the total Executive Performance RSUs awarded shall vest on the second anniversary of the Award Date, and (iii) the remaining one-third of the total Executive Performance RSUs awarded shall vest on the third anniversary of the Award Date, in each case provided that the Participant’s Continuous Service has not terminated before the applicable vesting date.
(e)    Change in Control.  In the event of a Change in Control before the Determination Date for Executive Performance RSUs, the Committee shall determine, in its sole discretion, whether to award none, some or all of the Target RSU Amount to the Participant under this Agreement, which awards shall be made within thirty (30) days of the Change in Control, and whether to accelerate the vesting of those Executive Performance RSUs it so awards; provided that, in no event shall the Participant be awarded a number of vested Executive Performance RSUs that is less than the number determined as follows:  (A) (1) the Company’s Operating Income from the beginning of the Performance Period through the calendar quarter ending immediately prior to the Change in Control shall be multiplied by a fraction, the numerator of which is four (4) and the denominator of which is the number of full calendar quarters ending prior to the Change in Control, and (2) a number of Executive Performance RSUs shall be determined according to the metrics of Section 2(a) above based on the above calculation of the annualized operating income, then (B) the Company shall multiply that number of Executive Performance RSUs by a fraction, the numerator of which is the number of months of Continuous Service during the Performance Period the Participant had completed as of the date of the Change in Control and the denominator of which is thirty-six (36).  In the event of a Change in Control on or after the Determination Date, but before the Executive Performance RSUs awarded to the Participant, if any, have fully vested under Sections 2(c) or (d), if the Participant’s Continuous Service has not terminated before the effective date of the Change in Control, the Executive Performance RSUs awarded to the Participant will fully vest immediately prior to the Change in Control, unless (i) the Company is the surviving entity and any adjustments necessary to preserve the value of the Participant’s outstanding Executive Performance RSUs have been made, or (ii) the Company’s successor at the time of the Change in Control irrevocably assumes the Company’s obligations under the Plan and this Agreement or replaces the Participant’s outstanding Executive Performance RSUs with an award of equal or greater value and having terms and conditions no less favorable to the Participant than those applicable to the Participant’s Executive Performance RSUs immediately prior to the Change in Control; provided, that, if the Participant’s Continuous Service has not terminated before the effective date of the Change in Control and the Participant’s Executive Performance RSUs do not become fully vested upon the Change in Control because of the foregoing provisions of this paragraph (e), the Participant’s Executive Performance RSUs nonetheless will become fully vested if, within two years after the effective date of the Change in Control, the Company or its successor terminates the Participant’s Continuous Service other than for Cause or the Participant terminates his or her Continuous Service for Good Reason (as defined below).  If the Participant terminates Continuous Service following a Change in Control due to death or Disability, the Participant will vest in any Executive Performance RSUs that have not previously vested.
(f)    Deferral of Share Distribution.  The Participant may elect to defer the receipt of Shares beyond the vesting date of the underlying Executive Performance RSUs in Section 2(d) above, by written election on the Company’s then-current Deferral Election Form, filed within thirty (30) days of the Award Date.  Any deferral period must be expressed as a number of whole years, not less than five (5) or more than ten (10), beginning on the Award Date.  Any such deferral election shall apply to the receipt of all Shares underlying the Executive Performance RSUs under this Agreement; for example, a deferral period of seven (7) years would result in the Participant receiving all Shares underlying the vested Executive Performance RSUs seven (7) years from the Award Date regardless of the fact that the Executive Performance RSUs under this Agreement may have vested at differing times.  If a Participant elects a deferral period but thereafter the Participant’s Separation from Service occurs after the Executive Performance RSUs vest but before the elected deferral period expires, then, subject to the forfeiture provisions of Sections 7 and 10, distribution of the Participant’s Shares underlying the Executive Performance RSUs will occur in accordance with Section 3 below).   
3.    Distribution of Shares.  On the Distribution Date, the Company may either (i) issue to the Participant or the Participant’s personal representative or beneficiary a Share certificate, (ii) deposit Shares with an online broker or other service provider contracted by the Company for such purpose, or (iii) handle such Shares according to the terms of a Change in Control, subject to the forfeiture provisions of Sections 4 and 7 below, but in each instance subject to compliance to the satisfaction of the Committee with all requirements under applicable laws or regulations in connection with such issuance and with the requirements hereof and of the Plan.  The Company will pay to the Participant in cash an amount in lieu of any fractional RSU, based on the Fair Market Value Per Share of the fractional Share.  Until such time as Shares have been issued to the Participant under this Section, the Participant shall not have any rights as a holder of the Shares underlying this Executive Performance RSU Award including but not limited to voting rights or dividends, if and when the Company declares same.  
4.    Adjustment of Executive Performance RSU Award.  In the event that the Company is required to prepare an accounting restatement due to the material noncompliance with any financial reporting requirement under the federal securities laws the Committee, in good faith and subject to its sole discretion, may reduce or increase the number of RSUs awarded to the Participant under this Agreement to reflect the number of RSUs that would have been awarded to the Participant under the accounting restatement.  At all times and regardless of the date of adoption any RSU target amounts established, RSUs awarded and Shares distributed under this Agreement shall be subject to any compensation recovery policy adopted by the Company to comply with applicable law or to comport with good corporate governances practices as determined by the Committee in its sole discretion, as such policy may be amended from time to time.  The Company’s remedies and rights under this Section 4 shall be in addition to any other remedies or rights that the Company shall have, and any penalties or restrictions that may apply, under state or federal law, or any employment or other agreement. 
5.    Changes in Capital or Corporate Structure.  In the event of any change in the outstanding Shares or in the capital structure of the Company by reason of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate transaction such as any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant change in capitalization occurring after the Award Date, the RSUs granted hereunder will be equitably adjusted or substituted pursuant to Section 13 of the Plan.
6.    Non-transferability.  RSUs awarded under this Agreement, and any rights and privileges pertaining thereto, may not be transferred, assigned, pledged or hypothecated in any manner, by operation of law or otherwise, other than as set forth in Section 22.2 of the Plan.
7.    Non-Competition; Non-Solicitation and Confidentiality Restrictive Covenants.  In order to protect the Confidential Information (as defined below), customer relationships, and other legitimate business interests of the Company, during the Participant’s Continuous Service and for twelve (12) months following the termination of his or her Continuous Service, the Participant will not, directly or indirectly, as an employee, agent, member, director, partner, consultant or contractor or in any other individual or representative capacity: (a) solicit any Protected Individual (as defined below) for other employment or engagement, induce or attempt to induce any Protected Individual to terminate his or her employment, hire or engage any Protected Individual, or otherwise interfere or attempt to interfere in any way in the relationship between the Company and such Protected Individual; or (b) solicit or provide competitive products or services to any Customer (as defined below) or Prospective Customer (as defined below) or otherwise interfere or attempt to interfere in any way in the relationship between the Company and any Customer or Prospective Customer.  Because the Company’s business is global in scope, the Participant understands and agrees that these restrictions apply worldwide. The Participant further agrees that at all times both during his or her Continuous Service and after his or her Continuous Service terminates, the Participant will not, without the Company’s express written permission, use Confidential Information for the Participant’s own benefit or the benefit of any other person or entity or disclose Confidential Information to any person other than (i) in the case of disclosures made during Participant’s Continuous Service, to persons to whom disclosure is required in connection with the performance of Participant’s duties for the Company or (ii) any disclosure requested by a court or regulatory authority with jurisdiction over the subject matter, in which event Participant agrees promptly to notify the Company in advance of and cooperate with the Company in any efforts to suppress or limit such disclosure.  
The Participant agrees that in the event of a breach or threatened breach of any of the covenants contained in this Section 7, in addition to any other penalties or restrictions that may apply under any employment agreement, state law, or otherwise, the Participant shall forfeit, upon written notice to such effect from the Company:  (i) any rights to receive an Executive Performance RSU Award under this Agreement, (ii) any and all RSUs awarded to him or her under the Plan and this Agreement, including vested RSUs or Shares; (iii) any Shares acquired under this Award, and (iv) any profit the Participant has realized on the vesting or sale of any Shares acquired under this Award, which the Participant shall be required to repay to the Company).  The forfeiture provisions of this Section 7 shall continue to apply, in accordance with their terms, after the provisions of any employment or other agreement between the Company and the Participant have lapsed.  The Participant consents and agrees that if the Participant violates or threatens to violate any provisions of this Section 7, the Company or its successors in interest shall be entitled, in addition to any other remedies that they may have, including money damages, to an injunction to be issued by a court of competent jurisdiction restraining the Participant from committing or continuing any violation of this Section 7.  In the event that the Participant is found to have breached any provision set forth in this Section 7 or elsewhere in this Agreement, the time period provided for in that provision shall be deemed tolled (i.e., it will not continue to run) for so long as the Participant was in violation of that provision.
8.    Binding Effect.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns.
9.    Tax Consequences and Withholding.  Nothing contained herein shall be construed as a promise, guarantee, or other representation by the Company of any particular tax effect nor shall the Company be liable for any taxes, penalties, or other amounts incurred by the Participant.  Without limiting the terms and conditions set forth in Section 16 of the Plan, the Company may withhold from any Shares that it is required to deliver under this Agreement the number of Shares sufficient to satisfy applicable withholding requirements under any applicable federal, state, local or foreign law, rule or regulation if any.  The Participant acknowledges that he or she has had sufficient opportunity to review with his or her own tax advisors the federal, state, local, and foreign tax consequences of the transactions contemplated by this Agreement.  The Participant acknowledges he or she must rely solely on such advisors and not on any statement or representations of the Company or any of its agents.  The Participant understands that he or she (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by the Agreement.
10.    No Limitation on the Company’s Rights.  The awarding of RSUs shall not in any way affect the Company’s right or power to make adjustments, reclassifications or changes in its capital or business structure or to merge, consolidate, reincorporate, dissolve, liquidate or sell or transfer all or any part of its business or assets.  The terms and provisions of this Agreement that provide for the Participant to forfeit Executive Performance RSUs in the event of a termination for Cause, shall be in addition to any other remedies or rights that the Company shall have, and any penalties or restrictions that may apply, under state or federal law, or any employment or other agreement.
11.    Plan and Agreement Not a Contract of Employment or Service.  Without limiting the terms and conditions set forth in Section 15 of the Plan, neither the Plan nor this Agreement is a contract of employment or service, and no terms of the Participant’s employment or service will be affected in any way by the Plan, this Agreement or related instruments, except to the extent specifically expressed therein.  Neither the Plan nor this Agreement will be construed as conferring any legal rights to the Participant to continue in service with the Company or any subsidiary or affiliate thereof.
12.    Entire Agreement and Amendment.  This Agreement is the entire Agreement between the parties to it, and all prior oral and written representations are merged in this Agreement.  This Agreement may be amended, modified or terminated only by written agreement between the Participant and the Company, provided, that the Company may amend this Agreement without further action by the Participant as set forth in Section 20 of the Plan.  
13.    Headings.  The headings in this Agreement are inserted for convenience and identification only and are not intended to describe, interpret, define or limit the scope, extent, or intent of this Agreement or any provision hereof.  
14.    Notices.  Notices given pursuant to this Agreement shall be in writing and shall be deemed received when personally delivered, or on the date of written confirmation of receipt by (i) overnight carrier, (ii) facsimile, (iii) registered or certified mail, return receipt requested, addressee only, postage prepaid, or (iv) such other method of delivery that provides a written confirmation of delivery.  Notice to the Company shall be directed to:
Fuel Tech, Inc. 
27601 Bella Vista Parkway
Warrenville, Illinois 60555
Attention: Equity Administration Department
Notices to or with respect to the Participant will be directed to the Participant, or to the Participant’s executors, personal representatives or distributees, if the Participant is deceased, or the assignees of the Participant, at the Participant’s most recent home address on the records of the Company.  The Company or the Participant may change the person and/or address to which the other party must give notice under this Section 14 by giving the other party written notice of such change, in accordance with the procedures described above.
15.    Compliance with Laws.  Without limiting the terms and conditions set forth in Section 19 of the Plan, no certificate for Shares distributable pursuant to the Plan or this Agreement shall be issued and delivered unless the issuance of such certificate complies with all applicable legal requirements including, without limitation, compliance with the provisions of applicable state securities laws, the Securities Act of 1933, as amended from time to time or any successor statute, the Exchange Act and the requirements of the exchanges on which Shares may, at the time, be listed, and the provisions of any foreign securities laws or the rules of foreign securities exchanges, where applicable.
16.    Failure to Enforce Not a Waiver.  The failure of the Company to enforce at any time any provision of the Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.
17.    Incorporation of the Plan.  The Plan, as it exists on the date of the Agreement and as amended from time to time, is hereby incorporated by reference and made a part hereof, and the Executive Performance RSU Award and the Agreement shall be subject to all terms and conditions of the Plan.  In the event of any conflict between the provisions of the Agreement and the provisions of the Plan, the terms of the Plan shall control, except with respect to the vesting provisions set forth herein.
18.    Governing Law; Venue.  The laws of the State of Delaware shall govern the validity, interpretation, construction, and performance of this Agreement, without regard to the conflict of laws principles thereof that would cause another jurisdiction’s laws to be applied.  The Company and the Participant hereby irrevocably and unconditionally submit, for themselves and their property, to the nonexclusive jurisdiction of any Illinois State court or federal court of the United States of America sitting in the Northern District of Illinois and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or for recognition or enforcement of any judgment, and the Company and the Participant hereby irrevocably and unconditionally agree that all claims in respect of any such action or proceeding may be heard and determined in any such Illinois State court or, to the extent permitted by law, in such federal court.
19.    Code Section 409A.  It is intended that this Agreement and the Plan be designed and operated within the requirements of Code Section 409A (including any applicable exemptions).  Any provision that is required by Section 409A to appear in the Plan or Agreement that is not expressly set forth therein shall be deemed to be set forth therein, and the Plan shall be administered in all respects as if such provision was expressly set forth herein.  Any reference in the Plan or Agreement to Section 409A or a Treasury Regulation Section shall be deemed to include any similar or successor provisions thereto.  
(a)    The Executive Performance RSU Award is intended to be exempt from Code Section 409A under the short-term deferral exception set forth in Code Section 409A or, in the alternative, to comply with the requirements of Section 409A.  With respect to all or any portion of the RSU Award for which a deferral election is not in effect (i.e., which is intended to be exempt from Code Section 409A under the short-term deferral exception set forth in Code Section 409A), then notwithstanding the definition of Distribution Date or any other provision in this Agreement to the contrary, the distribution of Shares shall occur no later than the 15th day of the third month of the calendar year following the calendar year in which the Performance Period ends (e.g., in the event of the Participant’s termination due to Disability on December 15, 2020, the Performance Period, by definition, shall end on December 15, 2020 and the Shares shall be distributed no later than March 15, 2021).  Also, with respect to each RSU Award, the Determination Date shall not be later than the first anniversary of the last day of the Performance Period.
(b)    Notwithstanding anything in the Plan or Agreement to the contrary, if the Participant should become subject to the 6-month delay rule of Treasury Regulation Section 1.409A-1(c)(3)(v), then to the extent that the Executive Performance RSU award, in whole or in part, is subject to Section 409A and the Participant is a Specified Employee (as defined below) as of the date of Separation from Service (as defined below), distributions with respect to any RSUs that have been deferred may not be made before the date that is six (6) months after the date of Separation from Service or, if earlier, the date of the Participant’s death. 
(c)    Whenever a payment or distribution under this Agreement specifies a payment or distribution period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the Change in Control”), the actual date of payment within the specified period shall be within the sole discretion of the Company.
(d)    Whenever a payment or distribution under this Agreement specifies a payment or distribution “as soon as practicable” following a payment or distribution event, such payment or distribution shall be made as soon as practicable after such event, but not later than the fifteenth day of the third month following the calendar year in which such event occurred, and the actual date of payment within such period shall be within the sole discretion of the Company.
20.    Counterparts.  This Agreement may be executed in one or more counterparts, all of which together shall constitute but one Agreement.
21.    Definitions.  Where used in this Agreement, the following capitalized terms shall have the following meanings: 
(a)    “Confidential Information” means any information (whether or not specifically labeled or identified as “confidential”), in any form or medium, that is disclosed to, developed, or learned by the Participant during his or her Continuous Service, that relates to the business, services, techniques, know-how, processes, methods, formulations, investments, finances, operations, plans, research or development of the Company, and that is not generally known outside of the Company.  Confidential Information includes, but is not limited to: the identity and information concerning the needs and preferences of current, former, and prospective customers; performance, compensation, and other personnel data concerning employees of the Company; business plans and strategies; plans for recruiting and hiring new personnel; trade secrets; and pricing strategies and policies.  Confidential Information does not include the general skills, knowledge, and experience gained during the Participant’s Continuous Service and common to others in the industry or information that is or becomes publicly available without any breach by the Participant of this Agreement.  
(b)    “Customer” means any Person (as defined below) who or which is or was a customer of the Company and with whom the Participant had business contact during his or her tenure as a Participant hereunder or about whom the Participant received Confidential Information; provided that a former customer will only be considered a “Customer” for twelve (12) months after the last date on which the Company provided products or services to such Person.
(c)    “Determination Date” means the actual date on which the Company awards RSUs to the Participant under this Agreement, which typically shall be within one hundred and twenty (120) days following the end of the applicable Performance Period (subject to Section 19(a)).  For clarification, this Section 21(c) shall not apply in circumstances in which the Participant receives RSUs pursuant to Sections 2(c) or 2(e) (e.g., in the event of the Participant’s death or termination due to Disability, or in certain instances of a termination of Continuous Service without Cause or Change in Control). 
(d)    “Distribution Date” means the date that is within thirty (30) days following the date on which the underlying RSUs vest; provided, that the Distribution Date for a Participant who elects to defer the distribution of his or her Shares beyond the date on which the applicable RSU vests will be the earlier of (i) the date of the Participant’s Separation from Service (subject to Section 19(b)), or (ii) the end of the deferral period specified by the Participant in his or her deferral election.  
(e)    “Good Reason” shall have the meaning set forth in any employment, consulting, or other written agreement between the Participant and the Company and, if there is no employment, consulting, or other written agreement between the Company and the Participant or if such agreement does not define “Good Reason” then for purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following, without the Participant’s prior written consent:
(i)    Any material diminution in the Participant’s assigned duties, responsibilities and/or authority; 
(ii)    Any material reduction in the Participant’s base compensation;
(iii)    The Company requires the Participant to be based at a location that is more than thirty-five (35) miles further from the Participant’s residence than the location of the Participant’s principal job location or office immediately prior to the Change in Control (except for required travel on Company’s business to an extent substantially consistent with the Participant’s then present business travel obligations); or
(iv)    Any other action or inaction that constitutes a material breach by the Company of any agreement under which the Participant provides services to the Company. 
Notwithstanding the foregoing, Good Reason shall not exist unless the Participant gives the Company written notice thereof within sixty (60) days after its occurrence and the Company shall not have remedied the action or omission within thirty (30) days after such written notice.
(f)    “Operating Income” means the Company’s operating income for the Performance Period, before the impact of incentive pay (but including adjustments to reflect the payment of sales commissions), as determined by the Committee in its sole discretion.
(g)    “Performance Period” means the 2020 calendar year.
(h)    “Person” means an individual or any type of business entity.
(i)    “Prospective Customer” means any Person, other than a Customer, toward whom or which the Company directed specific and material business development efforts, such as, but not limited to, a detailed proposal or bid, and with whom the Participant had business contact during his or her tenure as a Participant hereunder or about whom the Participant received Confidential Information; provided that such Person will only be considered a “Prospective Customer” for twelve (12) months after the last date on which such efforts were undertaken by the Company.
(j)    “Protected Individual” means an individual who is or was an employee, consultant or advisor of the Company and with whom the Participant had business contact at any time during the Participant’s employment or other retention by the Company or about whom the Participant received Confidential Information; provided that such a former employee, consultant or advisor will only be considered a “Protected Individual” for six (6) months after the last date he or she was employed by or provided services to the Company.
(k)    “Restricted Stock Unit” or “RSU” means a Restricted Stock Unit as defined in the Plan that is payable only in Shares.
(l)    “Separation from Service” shall have the meaning given in Code Section 409A, and references to termination of Continuous Service, as they relate to any deferral election or Distribution Date, shall be deemed to refer to a Separation from Service.  All references in this Agreement to “termination of employment” or “employment termination” shall be deemed to refer to a Separation from Service. 
(m)    “Specified Employee” has the meaning given to that term in Code Section 409A and Treasury Regulation §1.409A-1(i) (or any similar or successor provisions).

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Award Date.
	
		
	 
	Fuel Tech, Inc.

	_______________________________

	By:                   
Its:                   

Exhibit A
to 
2020 Executive Performance RSU Award Agreement

EXECUTIVE PERFORMANCE RSU DEFERRAL ELECTION FORM
Deferral election must be made within thirty (30) days of the Award Date
This Executive Performance RSU Deferral Election Form (“Deferral Election Form”) is entered into by and between Fuel Tech, Inc. (the “Company”) and Vincent J. Arnone (“the Participant” or “you”), who became eligible to receive an award of RSUs under the Fuel Tech, Inc. 2014 Long-Term Incentive Plan, as amended (the “Plan”) and a 2020 Executive Performance RSU Award Agreement (the “Agreement”), which Agreement was legally effective ____________, 2020.  The provisions of the Plan and the Agreement are incorporated herein by reference in their entirety and supersede any conflicting provisions contained in this Deferral Election Form.  Neither this Deferral Election Form nor the Plan or the Agreement shall be construed as giving the Participant any right to continue to be employed by or perform services for the Company or any subsidiary or affiliate thereof.  
1.    Deferral of RSUs 
Any deferral period must be expressed as a number of whole years, not less than five (5) or more than ten (10), beginning on the Award Date.
Any such deferral must apply to receipt of all Shares underlying the of RSU award. For example, if you were to elect a deferral period of seven (7) years for any Executive Performance RSUs, this would result in you receiving Shares underlying the entire Executive Performance RSUs award seven (7) years from the Award Date regardless of the fact that the Executive Performance RSUs may have vested at differing times.
All deferrals are subject to the terms of the Agreement.  The Agreement generally provides for distribution of all vested Shares within thirty (30) days following your Separation From Service (subject to the six (6)-month delay described in Section 19(b) of the Agreement which applies to certain Participants in the Plan) if your Separation From Service occurs prior to the deferral date below.
If no deferral period is specified on the Deferral Election Form or if the Company does not receive from you a signed and dated Deferral Election Form within the required election period applicable to the RSUs, Shares underlying those RSUs will be issued as described in the Agreement as soon as practicable upon vesting of the RSUs. 
		
	□
	No deferral.  I wish to receive Shares upon vesting of each installment of RSUs.

		
	□
	I wish to defer receipt of all Shares underlying Executive Performance RSUs until ___________, 20__.

2.    Deferral Election Effective Date, Revision of Election During Election Period 
This Deferral Election Form must be received by the Company within thirty (30) days of the Award Date and will become irrevocable on such date.  You may revise this Deferral Election with respect to the deferral period no later than this due date, by contacting the Company’s Equity Administration Department in writing in accordance with the Notice provision set forth in Section 14 of the Agreement. 
__________________________________________
        
Date:  ____________________________________

1

2020 Executive Performance RSU Award Agreement

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