Document:

Exhibit 10.1

 

AMENDMENT NO 2 To

 

EMPLOYMENT AGREEMENT

 

Company and Executive agree as follows:

 

		1.	Definitions. 

 

		(a)	Except as otherwise defined herein, the initially capitalized and fully capitalized terms shall
have the meanings ascribed to them in the Amended Agreement.

 

		(b)	“Agreement”  means the Executive Employment Agreement made and entered into by and between
Company and Executive on March 23, 2016, a copy of which is attached hereto as Exhibit A.

 

		(c)	“Amended Agreement” means the Agreement as amended by the First Amendment.

 

		(d)	“Amendment Date” means the date of the First Amendment.

 

		(e)	“First Amendment” means the February 15, 2017 amendment to the Agreement, a copy of which
is attached hereto as Exhibit B.

 

		(f)	“Second Amendment” means this amendment to the Amended Agreement.

 

		(g)	“Second Amendment Date” means August 2, 2017.

 

		(h)	“Company” means Akari Therapeutics PLC (registration number: 05252842) a company organized
under the law of England and Wales.

 

		(i)	“Executive” means Robert M. Shaw, residing at 24 Meadow Lane, West Long Branch, New Jersey,
07764 USA.

 

		2.	Amendments to the Agreement. 

 

		(a)	In Section 1 of the Amended Agreement, entitled “Role and Duties”, the first
                                                                                                         sentence is replaced, in its entirety, by the following sentences: “Subject to the terms and conditions of this
                                                                                                         Agreement, as amended, Company shall continue to employ Executive as its General Counsel and Company Secretary. In this
                                                                                                         position, Executive is the Chief Legal Officer (“CLO”) and the Chief Compliance Officer (“CCO”) of
                                                                                                         the Company and is also the functional head of the governance, intellectual property (“IP”) and information
                                                                                                         technology (“IT”) functions. Executive reports to the Executive Chairman or, if one does not exist, the Chairman,
                                                                                                         of the Board as Company Secretary pursuant to the Company's Articles of Association, as the CCO, and as the head of the
                                                                                                         governance function. Executive reports to the Company's Chief Executive Officer (“CEO”) as the CLO and as the
                                                                                                         head of the IP and IT functions. During the Term, Executive shall be reappointed annually as an executive officer of the
                                                                                                         Company with the foregoing titles and responsibilities.”

 

		(b)	In Section 3(a) of the Amended Agreement, entitled “Base Salary”,
the following words in the first sentence, “annual rate of $250,000.00” are replaced by the words “annual rate of
$318,000”, and the last sentence is amended to read in its entirety
as follows: “The Compensation Committee of the Board, with input from the Executive Chairman, or if one does not exist, the
Chairman, of the Board, and the CEO, shall review the Base Salary on an annual basis.”.

 

    	 	 	Page 1 of 2

     

    

 

		(c)	In Section 3(h) of the Amended Agreement, entitled “Annual Performance Bonus”, in the
first sentence, the words “Annual Performance Bonus equal to thirty percent (30%) of Executive's Base Salary in the year to
which the Annual Performance Bonus relates” are replaced by the following words: “Annual Performance Bonus equal to forty
percent (40%) of Executive's Base Salary in the year to which the Annual Performance Bonus relates”.

 

		(d)	In Section 4(c)(A) of the Amended Agreement, entitled “Severance Payments”, the following
words in the first sentence “seventy-five percent (75%) of'are deleted, and in the second sentence, the words: “over
a 9-month period” are replaced by the following words: “over a 12-month period”.

 

		(e)	In Section 4(c)(B) of the Amended Agreement, entitled “Benefit Payments”, the words “nine
(9) months” are replaced by the words “twelve (12) months” .

 

		3.	Additional Terms. 

 

		(a)	This Second Amendment is effective as of the Second Amendment Date.

 

		(b)	Except as expressly amended by this Second Amendment, the Amended Agreement shall remain in full
force and effect according to its terms.

 

		(c)	This Second Amendment may be executed in two or more counterparts, and by different parties hereto
on separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. For all purposes, a signature sent by email as a pdf shall be treated as an original.

 

IN WITNESS WHEREOF, Executive
and Company have executed this Second Amendment as of the Second Amendment Date.

 

	Executive	Company
	 	 
	 	Akari Therapeutics PLC
	 	 
	 	 
	/s/ Robert M. Shaw                                   	By:  /s/ Ray
    Prudo                                        
	Robert M. Shaw	Name:
Ray Prudo
	 	Title: Executive Chairman

  

    	 	 	Page 2 of 2ex10-1.htm

Exhibit 10.1

 

 

PERFORMANCE STOCK AWARD GRANT AGREEMENT

 

THIS PERFORMANCE STOCK AWARD GRANT AGREEMENT (the “Agreement”), by and between TWIN DISC, INCORPORATED (the “Company”) and _____________________________________ (the “Employee”) is dated this 2nd day of August, 2017, to memorialize an award of performance stock of even date herewith.

 

WHEREAS, the Company adopted a Long-Term Incentive Compensation Plan in 2010 (the “Plan”), which was amended and restated on July 31, 2015, whereby the Compensation and Executive Development Committee of the Board of Directors (the “Committee”) is authorized to grant performance stock awards that entitle an employee of the Company receiving such award to shares of common stock of the Company if the Company achieves certain predetermined performance objectives; and

 

WHEREAS, effective August 2, 2017, the Committee made an award of performance stock to the Employee as an inducement to achieve the below described performance objectives.

 

NOW, THEREFORE, in consideration of the premises and of the covenants and agreements herein set forth, the parties hereto agree as follows:

 

1. Performance Stock Award Grant.  Subject to the terms of the Plan, a copy of which has been provided to the Employee and is incorporated herein by reference, the Company has granted Employee a performance stock award effective August 2, 2017.  Such performance stock award shall entitle the Employee to receive a number of shares of the Company’s common stock (the “Shares”) if the Company achieves the average sales revenue, economic profit, and/or relative total shareholder return objectives (the “Performance Objectives”) stated below for the three fiscal year period ending June 30, 2020 (the “Performance Period”):

 

	  	
Average Return on Invested Capital (a/k/a Average Return on Total Capital)

(40% Weight)
	
Average Sales Revenue

(30% Weight)
	
Average Annual Earnings Per Share (30% Weight)

	
Maximum (150% payout)
	
XX%
	
$XXX
	
$XXX

	
Target (100% payout)
	
XX%
	
$XXX
	
$XXX

	
Threshold (50% payout)
	
XX%
	
$XXX
	
$XXX

 

For purposes of the above table:

 

“Average Return on Invested Capital” (also known as Average Return on Total Capital) is the average amount of “Return on Invested Capital” for the three fiscal years of the Performance Period ”. (Return on Invested Capital is measured as NOPAT divided by Invested Capital, where NOPAT equals earnings from operations, less tax, calculated using the actual reported effective tax rate, and Invested Capital equals long-term debt plus shareholders equity).

 

“Average Sales Revenue” is the average of the amount reported as annual “Net Sales” in the Company’s financial statements for the three fiscal years of the Performance Period. 

 

“Average Earnings Per Share” is the average of the amount reported as “Diluted earnings per share attributable to Twin Disc common shareholders” for the three fiscal years of the Performance Period.

 

2.     Target Shares Awarded; Adjustments. The target number of Shares awarded under this Agreement is _______ Shares. The actual number of Shares that will be issued upon attainment of one or more of the Performance Objectives shall be determined as follows after the end of the Performance Period:

 

	 	
(a)
	
With respect to each Performance Objective, a value shall be determined as a percentage of the target based on the attainment of the Performance Objective for the Performance Period. If the Company does not obtain the threshold for that Performance Objective, such percentage shall be 0%. If the Company equals or exceeds the maximum for that Performance Objective, the percentage shall be 150%. With respect to each of the Performance Objectives, outcomes between the threshold and target will be interpolated linearly between the amount of threshold award and the amount of the target award applicable to that Performance Objective, and outcomes between target and maximum will be interpolated linearly between the amount of the target award and the amount of the maximum award applicable to that Performance Objective. 

 

 

 

 

 

	 	
(b)
	
The percentage for each Performance Objective shall be multiplied by the weight accorded to that Performance Objective as reflected in the above table. 

 

	 	
(c)
	
The weighted percentages for each of Performance Objectives as determined above shall be added together, and the resulting sum shall be multiplied by the target number of Shares awarded under this Agreement. Any fractional share of the Company resulting from such multiplication shall be rounded up to a whole share of the Company.  The resulting figure shall be the number of shares issued to the Employee.

 

The Committee shall certify whether and to what extent each Performance Objective is satisfied before any Shares are awarded.  Such certification, and the issuance of Shares pursuant to such certification, shall be made within 21⁄2 months after June 30, 2020.

 

3. Price Paid by Employee.  The price to be paid by the Employee for the Shares granted shall be         No          Dollars ($ 0.00) per share.

 

4. Voluntary Termination of Employment Prior to Retirement/Termination for Cause.  If, prior to attaining the Performance Objective, the Employee voluntarily terminates employment prior to attaining age 65 (or prior to attaining age 60 with the accrual of 10 years of employment with the Company and its subsidiaries) or the employment of the Employee is terminated for cause, the performance stock granted to the Employee shall be forfeited.  The Committee shall conclusively determine whether the Employee was terminated for cause for purposes of this performance stock award.

 

5. Termination of Employment due to Death or Disability.  If, prior to attaining the Performance Objectives, the Employee terminates employment due to death or disability, a prorated portion of the performance stock granted shall immediately vest, and the Company shall deliver shares of Company stock underlying such prorated awards as if the maximum Performance Objectives had been fully achieved.  The delivery of such shares shall occur (i) no later than 21⁄2 months after the Employee’s termination of employment due to death; or (ii) on the earlier of (A) the first day of the seventh month following the date of the Employee’s termination of employment due to disability or (B) the date of the Employee’s death.  The prorated award shall be determined by multiplying the maximum number of shares underlying the award by a fraction, the numerator of which is the number of days from July 1, 2017, through the Employee’s last day of employment, and the denominator of which is the number of days from July 1, 2017, through June 30, 2020.  Any fractional share of the Company resulting from such a prorated award shall be rounded up to a whole share of the Company.  The Committee shall conclusively determine whether the Employee shall be considered permanently disabled for purposes of this performance stock award.

 

6. Other Termination of Employment Other than Change of Control of Company.  If, prior to attaining the Performance Objectives, the Employee voluntarily terminates employment after attaining age 65 (or after attaining age 60 with the accrual of 10 years of employment with the Company and its subsidiaries), or is terminated for any reason other than for cause or following a Change in Control of the Company as described in Section 7, the performance stock granted to the Employee shall be paid on a prorated basis if and when one or more of the Performance Objectives are achieved.  The prorated award shall be determined by multiplying the number of shares that would have been issued had the Employee remained employed through June 30, 2020 by a fraction, the numerator of which is the number of days from July 1, 2017, through the Employee’s last day of employment, and the denominator of which is the number of days from July 1, 2017, through June 30, 2020.  Any fractional share of the Company resulting from such a prorated award shall be rounded up to a whole share of the Company.  Shares of the Company underlying such prorated award shall be issued in the ordinary course after the determination by the Committee that one or more of the Performance Objectives has been achieved (and no later than 21⁄2 months after June 30, 2020).

 

 

 

 

 

7. Termination Following Change in Control.  Notwithstanding Sections 4, 5 and 6 above, if an event constituting a Change in Control of the Company occurs and the Employee thereafter either terminates employment for Good Reason or is involuntarily terminated by the Company without cause, then the performance stock granted hereunder shall immediately vest and Shares of the Company underlying the award shall be delivered as if the maximum Performance Objectives had been fully achieved.  The delivery of such shares shall occur on the earlier of (i) the first day of the seventh month following the date of the Employee’s termination of employment, or (ii) the date of the Employee’s death. Employee’s continued employment with the Company, for whatever duration, following a Change in Control of the Company shall not constitute a waiver of his or her rights with respect to this Section 6. Employee's right to terminate his or her employment pursuant to this Subsection shall not be affected by his or her incapacity due to physical or mental illness.  For purposes of this Section 6:

 

	
  
	
(a)
	
“Good Reason” shall mean any of the following, without the Employee’s written consent:

 

	
  
	
(i)
	
the assignment to Employee of duties, responsibilities or status inconsistent that constitute a material diminution from his or her present duties, responsibilities and status or a material diminution in the nature or status of Employee's duties and responsibilities from those in effect as of the date hereof;

 

	
  
	
(ii)
	
a material reduction by the Company in Employee's base salary as in effect on the date hereof or as the same shall be increased from time to time ("Base Salary");

 

	
  
	
(iii)
	
a material change in the geographic location at which the Employee must provide services; or

 

	
  
	
(iv)
	
a material change in or termination of the Company’s benefit plans or programs or the Employee’s participation in such plans or programs (outside of a good faith, across-the-board reduction of general application) in a manner that effectively reduces their aggregate value.

 

	
  
	
(b)
	
“Change in Control of the Company” shall be deemed to occur in any of the following circumstances:

 

	
  
	
(i)
	
if there occurs a change in control of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)  whether or not the Company is then subject to such reporting requirement;

 

	
  
	
(ii)
	
if any “person” (as defined in Sections 13(d) and 14(d) of the Exchange Act) other than John Batten or any member of his family (the “Batten Family”), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the Company's then outstanding securities;

 

	
  
	
(iii)
	
if during any period of two (2) consecutive years (not including any period prior to the execution of this Agreement) there shall cease to be a majority of the Board comprised as follows:  individuals who at the beginning of such period constitute the Board and any new director(s) whose election by the Board or nomination for election by the Company's shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved; or

 

 

 

 

 

	
  
	
(iv)
	
if the shareholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 80% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all the Company's assets.

 

	 	(c) 	To constitute a termination for Good Reason hereunder:

 

	
  
	
(i)
	
Termination of employment must occur within two years following the existence of a condition that would constitute Good Reason hereunder; and

 

	
  
	
(ii)
	
Employee must provide notice to the Company of the existence of a condition that would constitute Good Reason within 90 days following the initial existence of such condition.  The Company shall be provided a provided a period of 30 days following such notice during which it may remedy the condition.  If the condition is remedied, the Employee’s subsequent voluntary termination of employment shall not constitute termination for Good Reason based upon the prior existence of such condition.

 

8. Employment Status.  Neither this Agreement nor the Plan imposes on the Company any obligation to continue the employment of the Employee.

 

	
 
	
TWIN DISC, INCORPORATED

 

By:     ____________________________________

Its:     ____________________________________

 

EMPLOYEE:

 

__________________________________________

[NAME]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}]]