Document:

Exhibit

Exhibit 10(ac)

TRANSITION AGREEMENT

This Transition Agreement (“Agreement”) is entered into by and between Stanton D. Sloane (“you”) and Comtech Telecommunications Corporation, a Delaware Corporation (the “Company”) on behalf of itself and its past and/or present parent entities, and its or their subsidiaries, divisions, affiliates and related business entities, successors and assigns, assets, employee benefit plans or funds, and any of its or their respective past and/or present directors, officers, fiduciaries, agents, trustees, administrators, employees and assigns, whether acting as agents for the Company or in their individual capacities (collectively the “Company Entities”). 

In exchange for and as a condition of receiving the payments and benefits set forth in Section 3 below, you and the Company hereby agree as follows:

1.Status.     Effective September 16, 2016 you have resigned as a member of the Board of Directors of the Company (the “Board”), and as of the “Effective Date” (as defined in Section 14 below), you will cease to serve as the Chief Executive Officer of the Company and will be deemed to have resigned from any other position as an employee, officer, director, or fiduciary of any Company-related entity.  You agree to take any and all necessary actions to effectuate your resignation from the Company and any of its affiliates as of the Effective Date.  From and after the Effective Date, you shall not represent yourself as being an employee, officer, agent or representative of the Company for any purpose. 
2.    Transition Services.
a.    During the period beginning on the Effective Date and ending on the first anniversary thereof (such period, the “Transition Period”), you agree to make yourself reasonably available to provide such transition and consulting services to the Company as may be requested by the Company’s chief executive officer for a period not to exceed eight hours per month.  The transition and consulting services will be performed when mutually convenient to the Company and you, by phone or by in-person attendance at meetings, subject to the Company providing you reasonable prior notice of any request for in-person attendance at a meeting and making reasonable scheduling accommodations to any of your previously scheduled commitments and subject to such services not unreasonably interfering with your then current business, employment or personal activities.  If services in excess of eight hours in any calendar month are required, the parties will negotiate in good faith a per diem or hourly rate to be paid Executive for such excess hours.
b.    Upon the receipt of reasonable notice from the Company (including outside counsel), you agree that, during the Transition Period and thereafter, you will respond and provide information with regard to matters in which you have knowledge as a result of your employment with the Company, and will provide reasonable assistance to the Company, its affiliates and their respective representatives in defense of any claims that may be made against the Company or its affiliates, and will assist the Company and its affiliates in the prosecution of any claims that may be made by the Company or its affiliates, to the extent that such claims may relate to the period of your employment with the Company.  You agree to promptly inform the Company if you become aware of any lawsuits involving such claims that may be filed or 

threatened against the Company or its affiliates.  You also agree to promptly inform the Company (to the extent that you are legally permitted to do so) if you are asked to assist in any investigation of the Company or its affiliates (or their actions), regardless of whether a lawsuit or other proceeding has then been filed against the Company or its affiliates with respect to such investigation, and shall not do so unless legally required.  Upon presentation of appropriate documentation, the Company shall pay or reimburse you for all reasonable out-of-pocket travel, duplicating or telephonic expenses incurred by you in complying with this Section 2.  You shall be indemnified by the Company for any services you provide hereunder on the same basis as if you were still in active employment with the Company.    
3.    Payments and Benefits.    Regardless of whether you execute and do not revoke this Agreement, you will receive the Accrued Benefits (as defined in the Employment Agreement dated as of December 22, 2014 (the “Employment Agreement”)) in connection with your cessation of employment.  In exchange for your execution and non-revocation of this Agreement and your compliance with the other terms and conditions of this Agreement and the Employment Agreement, the Company agrees to pay or provide you the following payments and benefits in full satisfaction of its obligations to you pursuant to the Employment Agreement:
a.    Continued payment of your Base Salary as in effect on the Effective Date for a period of twelve (12) months following the Effective Date, paid in accordance with the regular payroll practices of the Company, the first payment of which will be made on the first payroll period after the sixtieth (60th) day following the Effective Date, which first payment shall include payment of any amounts that would otherwise be due prior thereto; 
b.    A lump sum amount equal to $300,000 (comprising $278,000 in respect of fiscal 2016 non-equity incentive compensation, and $22,000 in respect of fiscal 2017 non-equity incentive compensation), payable in the first payroll period which commences following the Effective Date. 
c.    An amount of up to $1,200 per month for the first six (6) months following the Effective Date for premium payments for medical coverage; and
d.    The equity awards granted by the Company to you in your capacity as an employee of the Company are listed on Schedule A to this Agreement (the “Employee Awards”).  The time-vesting of the Employee Awards shall be accelerated to the Effective Date and otherwise governed by the terms of the respective award agreements and the terms of the Company’s 2000 Stock Incentive Plan, as amended (the “2000 Plan”). 
e.    The equity awards granted by the Company to you in your capacity as a non-employee member of the Board are listed on Schedule B to this Agreement (the “Director Awards”).  The Director Awards comprising stock units (which you elected to receive in lieu of cash fees) were previously fully vested, and the time-vesting of Director Awards comprising restricted stock units will be governed by the terms of the respective award agreements and the terms of the 2000 Plan.
4.    Acknowledgement.    You acknowledge and agree that the payments and other benefits provided pursuant to this Agreement (other than the Accrued Benefits): (a) are in full 

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satisfaction and discharge of any and all liabilities and obligations of the Company to you, monetarily or with respect to employee benefits or otherwise, to which you may be entitled pursuant to the Employment Agreement; and (b) are in lieu of any termination or severance payments or benefits for which you may be eligible under any of the plans, policies or programs of the Company.
5.    Release.
a.    For good and valuable consideration , the receipt and adequacy of which is hereby acknowledged, and conditioned upon the substantial performance by the Company of its obligations hereunder you, on behalf of yourself and your successors, assigns, heirs and representatives (each, a “Releasing Party”), hereby release and forever discharge the Company, its stockholders, officers, directors, employees, agents and attorneys, and their respective successors, assigns, heirs and representatives (each, a “Released Party”), individually and collectively, from any and all claims, demands, causes of action, liabilities or obligations, known or unknown, pending or not pending, liquidated or not liquidated, of every kind and nature whatsoever (collectively, the “Released Claims”) which the Releasing Party has, has had or may have against any one or more of the Released Parties arising out of, based upon or in any way, directly or indirectly, related to the Company’s business, your employment with the Company or the termination of such employment; provided, however, that this Agreement shall have no effect whatsoever upon: (i) the Company’s obligations, if any, to pay or provide all payments and benefits pursuant to this  Agreement or your rights to enforce such obligations; (ii) any and all obligations of the Released Parties to defend, indemnify, hold harmless or reimburse you under the Indemnification Agreement between the Company and you, and/or under applicable law and/or under the respective charters and by-laws of the Released Parties, and/or pursuant to insurance policies, if any, for acts or omissions in your capacity as a director, officer and/or employee thereof; and (iii) any and all rights you may have to vested or accrued benefits or entitlements under and in accordance with any applicable plan, agreement, program, award, policy or arrangement of a Released Party.
b.    The Released Claims include, without limitation, (i) all claims arising out of or relating to breach of contract, the Fair Labor Standards Act, the Equal Pay Act, the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, the National Labor Relations Act, the Americans with Disabilities Act, the Employee Retirement Income Security Act, the New York State Human Rights Law, and/or any other federal, state or local statute, law, ordinance, regulation or order as the same may be amended or supplemented from time to time, (ii) all claims for back pay, lost benefits, reinstatement, liquidated damages, punitive damages, and damages on account of any alleged personal, physical or emotional injury, and (iii) all claims for attorneys’ fees and costs other than with respect to the continuing indemnification obligations of the Company under the Indemnification Agreement referenced in Section 5.a. above. 
c.    You agree that you are voluntarily executing this Agreement.  You acknowledge that you are knowingly and voluntarily waiving and releasing any rights you may have under the Age Discrimination in Employment Act of 1967 and that the consideration given for the waiver and release is in addition to anything of value to which you were already entitled. You further acknowledge that you have been advised by this writing, as required by the Age 

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Discrimination in Employment Act of 1967, that: (i) your waiver and release specified herein does not apply to any rights or claims that may arise after the date you sign this Agreement or your rights with respect to severance payments, if any, payable to you pursuant to the Employment Agreement; (ii) you have the right to consult with an attorney prior to signing this Agreement; (iii) you have at least twenty-one (21) days to consider this Agreement (although you may choose to sign it earlier); (iv) you have seven (7) days after you sign this Agreement to revoke it; and (v) this Agreement will not be effective until the date on which the revocation period has expired, which will be the eighth day after you sign this Agreement, assuming you have returned it to the Company by such date.
6.    Waiver of Relief.    You acknowledge and agree that by virtue of the foregoing release, you have waived any relief available to you (including without limitation, monetary damages, equitable relief and reinstatement) under any of the claims and/or causes of action waived in Section 5.  Therefore, you agree that you will not accept any award or settlement from any source or proceeding (including but not limited to any proceeding brought by any other person or by any government agency) with respect to any claim or right waived in this Agreement.
7.    Restrictive Covenants.    You acknowledge and agree that restrictive covenants set forth in Section 11 of the Employment Agreement and the other provisions of Section 12 of the Employment Agreement intended to survive termination or expiration of the Employment Term shall remain in full force and effect in accordance with their terms.  The Company acknowledges its obligations under Section 11(b) of the Employment Agreement shall remain in full force and effect in accordance with its terms.
8.    Severability.    If any provision of this Agreement is held by a court of competent jurisdiction to be illegal, void or unenforceable, such provision shall have no effect; however, the remaining provisions shall be enforced to the maximum extent possible.  Further, if a court should determine that any portion of this Agreement is overbroad or unreasonable, such provision shall be given effect to the maximum extent possible by narrowing or enforcing in part that aspect of the provision found overbroad or unreasonable.  
9.    Breach of Agreement.     You agree that any breach of this Agreement shall constitute a material breach as to which the Company may seek all relief available under the law or at equity, including recoupment of the severance payments and benefits provided pursuant to this Agreement.  You further acknowledge that any breach of the promises set forth in this Agreement will cause the Company irreparable harm for which there is no adequate remedy at law, and you therefore consent to the issuance of an injunction in favor of Company enjoining the breach of any of those promises by any court of competent jurisdiction.  In addition, your receipt of the payments and benefits set forth in Section 3 hereof is subject to and contingent upon your compliance with terms and conditions of the Employment Agreement. 
10.    Miscellaneous.
a.    This Agreement is not intended, and shall not be construed, as an admission that any of the Company Entities have violated any federal, state or local law 

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(statutory or decisional), ordinance or regulation, breached any contract or committed any wrong whatsoever against you.
b.    If any provision of this Agreement requires interpretation or construction, it is agreed by the parties that the entity interpreting or construing this Agreement shall not apply a presumption against one party by reason of the rule of construction that a document is to be construed more strictly against the party who prepared the document.
c.    The provisions of Section 10 pertaining to Executive having no duty to mitigate by seeking other employment and Executive’s entitlement to payments not being reduced by compensation received by Executive from subsequent employment shall remain in full force and effect in accordance with their respective terms except that such provisions shall be deemed to apply to this Agreement.  Section 23 of the Employment Agreement (Code Section 409A Compliance) shall remain in full force and effect in accordance with its terms except that it shall be deemed to apply to this Agreement.
d.    At all times during the Transition Period, your status shall be that of an independent contractor, and you will not act as a representative for or on behalf of the Company for any purpose or transaction, and may not bind or otherwise obligate the Company in any manner whatsoever without obtaining the prior written approval of the Company.  During the Transition Period, you will not be eligible to participate in any of the employee benefit plans or arrangements of the Company.
e.    The Company may withhold from any and all amounts payable under this Agreement such federal, state, local or other taxes as may be required to be withheld pursuant to any applicable law or regulation.
f.    Not later than the Effective Date, you will return to the Company all property belonging to the Company or its affiliates (including, but not limited to, any Company-provided laptops, computers, cell phones, wireless electronic mail devices and other equipment, or documents and property belonging to the Company).  You may retain your rolodex and similar address books provided that such items only include contact information.  To the extent that you were provided with a cell phone number by the Company during your employment the Company will cooperate with you in transferring such cell phone number to your individual name following the Effective Date.
11.    Assignment.    This Agreement is binding upon, and shall inure to the benefit of, the parties and their respective heirs, executors, administrators, successors and assigns.
12.    Governing Law.    This Agreement shall be construed and enforced in accordance with the laws of the State of New York without regard to the principles of conflicts of law.
13.    Entire Agreement.    Except as specifically provided hereinabove, the Employment Agreement shall cease to be in further force or effect as of the Effective Date.   You understand that this Agreement and the surviving provisions of the Employment Agreement constitute the complete understanding between the Company and you, and supersede any and all agreements, understandings, and discussions, whether written or oral, between you and any of 

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the Company Entities.  No other promises or agreements shall be binding unless in writing and signed by both the Company and you after the Effective Date of this Agreement.
14.    Acceptance.    You may accept this Agreement by signing it and returning it to Mr. Fred Kornberg, on or before October 7, 2016.  After executing this Agreement, you shall have seven (7) days (the “Revocation Period”) to revoke it by indicating your desire to do so in writing delivered to Mr. Fred Kornberg by no later than 5:00 p.m. on the seventh (7th) day after the date you sign this Agreement.  The effective date of this Agreement shall be the eighth (8th) day after you sign it (the “Effective Date”).  If the last day of the Revocation Period falls on a Saturday, Sunday or holiday, the last day of the Revocation Period will be deemed to be the next business day.  In the event you do not accept this Agreement as set forth above, or in the event you revoke this Agreement during the Revocation Period, this Agreement, including but not limited to the obligation of the Company to provide severance payments and benefits, shall be deemed automatically null and void, provided that you will remain subject to the terms and conditions of the Employment Agreement.
15.    Headings and Captions.    The headings and captions herein are provided for reference and convenience only.  They shall not be considered part of the Agreement and shall not be employed in the construction of the Agreement.
16.    Legal Fees and Expenses.  Executive shall be promptly reimbursed for his legal fees and expenses incurred in negotiating and drafting this Agreement in an amount not to exceed $5,000.  Such reimbursement shall be conditioned upon Executive providing the Company with a written invoice from the law firm rendering such services.
[Signature page follows]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

Stanton D. Sloane

/s/ Stanton D. Sloane                    Date: September 28, 2016

COMTECH TELECOMMUNICATIONS CORPORATION

By: /s/ Fred Kornberg                    Date: September 28, 2016
Name: Fred Kornberg    
Its: Chairman of the Board of Directors

Signature Page – Transition Agreement
between Comtech Telecommunications Corp. and Stanton D. Sloane

Schedule A

	
			
	Director Stock Options

	Grant Date
	Exercise Price
	# Outstanding

	1/13/2012
	$29.72
	5,753

	6/6/2012
	$29.51
	15,000

	
		
	Director Stock Units

	Grant Date
	# Outstanding

	2/28/2014
	205

	5/30/2014
	201

	8/29/2014
	173

	11/28/2014
	165

	
		
	Director Restricted Stock Units

	Grant Date
	# Outstanding

	6/5/2013
	2,076

	6/4/2014
	2,080

Schedule B

	
			
	Stock Options (unvested options to become fully vested)

	Grant Date
	Exercise Price
	# Outstanding

	1/26/2015
	$33.76
	29,025

	1/26/2015
	$33.76
	125,000

	8/4/2015
	$28.35
	60,000

	
		
	Long-Term Performance Shares

	Grant Date
	# Outstanding

	1/26/2015
	5,554

	8/4/2015
	12,500Exhibit 10.14

 

July 13, 2016

 

LETTER OF UNDERSTANDING

 

Dear Ted,

 

This Letter of Understanding (LOU) stipulates the conditions of your employment and terms of compensation of your assignment with Yum! Restaurants Consulting (Shanghai) Company Limited.

 

Effective August 1, 2016, you are appointed CFO, Yum! Brands Inc., China Division, reporting directly to Micky Pant, CEO, Yum China.  This offer is contingent upon your obtaining the required Work Permit and Residence Permit including medical clearance.  Your declared home base is Detroit, Michigan.

 

This letter of understanding is specifically for the role of CFO, Yum China.  In the event you are assigned to a different role and/or level in the future, the Company has the discretion to make appropriate adjustments to your agreement, reflective of the benefits and tax treatment associated with the role and/or level.  Upon the separation of Yum! Inc and Yum China later this year, your employing legal entity is Yum China Holdings, Inc., and your benefits will be provided under Yum China, and the Incentive Plan will based on the Yum China Team Factor.

 

Annual Base Salary:

 

Your annual salary for this assignment is 525,000 USD (less hypothetical tax withholdings).  Your salary will be administered at the LT range.  You will be eligible for a salary review in February each year.

 

Incentive Plan:

 

You will be eligible to participate in the Yum! Leaders’ Bonus (YLB) Plan.  Your Target Bonus is 65% of your annual salary.  The Yum! Leaders’ Bonus will be based on your overall contributions to the business as well as the team’s ability to meet our business objectives.  Team factor is a combination of Yum! China Division (75%) and Yum! Brands (25%).  The Team Factor has a 200% (2 x target) maximum and the Individual Factor has a 150% (1.5 x target) maximum.  Therefore, your annual award can be anywhere from 0 to 3 times (Team X Individual Factor) your Target Bonus amount.  For 2016, you will receive prorated amount based on the time you support Yum! Asia and the time you cover Yum China.

 

Long Term Incentive Plan:

 

You will be eligible to participate in the Yum China Stock Appreciation Right (SAR) grant.  SAR grants are awarded annually, based on your position level.  For your reference, the annual target LTI grant for an individual in your position is US$750,000 (economic value).  Grants will normally have a vesting schedule of 25% per year.

 

 

You will need to attain 20% of the Ownership guidelines each year for the next 5 years to continue to be eligible for the LTI grant.  You will receive further information on the Yum China Stock Appreciation Rights Program and Ownership Guidelines in the annual grant cycle.

 

Yum China Founders’ Grant Award:

 

To reflect our commitment to you as a crucial leader, the Company is pleased to present you with the following:

 

·                  A Yum China stock appreciation right (SAR) grant award valued at USD 500,000 in economic value, to be granted as soon as administratively possible following the spinoff date.  Your award will vest 25% per year, meaning that it will be fully vested 4 years from the grant date.

 

·                  A Restricted Stock Unit (RSU) award valued at USD 500,000 in economic value, to be granted as soon as administratively possible following the spinoff date, which delivers shares of Yum China company stock to you as the award vests.  Your award will vest over a 3-year period, with 50% vesting on the second grant anniversary and 50% on the third grant anniversary.

 

Transportation:

 

While you work in China, you will be provided with a leased car which comes with a driver.  The driver is scheduled to work 12-hour per day (Monday to Saturday, except National Holiday).  You will be responsible for the OT allowance beyond the 12-hour day and that of National holidays and Sundays.

 

In addition, you will be reimbursed of car running expenses of up to RMB 42,000 per annum per China Expatriate Guideline.

 

Housing:

 

While you work in China, you will be provided with adequate housing at no cost to you.  Your housing budget, based on your level and family size, is RMB 70,600 per month.  The Company will reimburse electricity, water, gas and basic telephone charges of up to five percent (5%) of the rental budget.  Only the actual amount incurred will be borne by the Company.  The above budget may be adjusted from time to time based on prevailing market value and conditions.  The appointed agent will assist you with securing an appropriate Company leased house unit which you and your family can move in within 30 days from your arrival.

 

Relocation into China:

 

When you begin your assignment, the company will pay for one-way business class airfare for you and eligible dependents who will reside in China permanently with you, via the most direct route between your current assignment location, Singapore and Shanghai.

 

To assist you and your family to settle in, temporary accommodation (company arranged service apartment) plus reimbursement of up to RMB 600 per adult and RMB 300 per child per day

 

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covering such expenses as meals, drinks, laundry, telephone charges, sundries, gratuities and local transportation will be provided for up to 30 days upon arrival.

 

Relocation Allowance

 

You will be provided with a one-time relocation allowance of RMB 80,000(net) to defray your relocation expenses.

 

Moving Expenses:

 

The full cost of packing, shipping, insuring and unpacking your household goods and personal effects from your current assignment location, Singapore to Shanghai, will be assumed by the Company, subject to a volume limitation of 40 cubic meters.  All moves must be approved by our Human Resource Department prior to shipment.  Please contact Linda Li (Linda.Li@yum.com) in Shanghai to assist you with your move.

 

Group Insurance and Retirement Benefits:

 

You will participate in Yum’s salaried benefit plans as you will continue to remain on the US Payroll for tax purposes.  Benefits provided at Company expense are basic life insurance, business travel accident, salary continuance and basic long term disability.

 

Medical Insurance:  You and your family will participate in the CIGNA US expatriate International Medical Benefit Plan.  As part of this plan, you will select contributory coverage for you and your dependents for medical and dental coverage.  Vision, Hearing and Prescription benefits are covered through the medical plan.  These benefits are subject to change, as they are reviewed and revised periodically.

 

Retirement:  You will continue to participate in the Third Country National Retirement Plan.

 

Vacation Leave & Home Passage Provision:

 

You will be eligible for a total of 20 workdays of paid vacation leave per year, for the duration of your overseas assignment.  You will observe all local holidays.

 

As we encourage you to take a part of the vacation period away from your assignment location, we will provide you with a travel budget based on two round trip air tickets per eligible family member (via the most direct air route, restricted business class) from your assignment location to your home base city in United States.

 

No payment will be made in lieu of vacation travel not being performed.  All vacations and reimbursements will be administered in accordance with the Vacation Leave Policy.  Budget for partial year will be on pro-rata basis.

 

Tax Support:

 

Income Tax Preparation Services:  To assist in the preparation of both your US and China income tax returns, the Company has arranged complimentary tax preparation services for the

 

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duration of your assignment through Ernst & Young (EY), the Company appointed expatriate tax services provider.  In addition, you will receive a complimentary tax briefing from EY to receive an overview of the tax process related to your assignment.

 

1.                                      Tax Equalization Program:  You will be covered by our Tax Equalization Program which guarantees that your total income tax liability will approximate the US Federal and FICA Tax Liability of a comparable employee with Yum China Holdings Inc. in the United States with a similar base compensation and family size.

 

In addition, the Company will remit all of your China assignment income and social taxes and in return, will recoup the benefits of any foreign tax credits generated on your income tax returns as it relates to these assignment taxes.

 

2.                                      US Hypothetical Tax:  Under the program, a US Hypothetical Tax will be retained from your base salary and incentive awards.  EY will assist in the calculation of the estimated hypothetical tax at the onset of your assignment and will prepare a calculation at the time of the preparation of your US income tax return to ensure that the correct amount of hypothetical tax has been withheld during the year.  If there has been an overpayment, a reimbursement will be made to you.  Similarly, if there is under withholding, you will be asked to reimburse Yum. In addition, you agree that any foreign tax credits that accumulate during this assignment will be used to offset the Company’s liability accumulated on your behalf.

 

In the event that upon termination of this foreign assignment a US tax return disclosed excess foreign tax credits which can be carried forward to future tax years or carried back to offset prior year’s tax liability, you agree that your US tax returns during the carry-forward period will be prepared by the Company appointed tax provider at the Company’s expense, and that you will repay to the Company tax benefits realized from the utilization of such offset.

 

Your Long Term Incentives will also be covered under tax equalization for up to 3 years after your retirement or separation from the Company.  If the Company determines that a significant individual tax impact remains after the 3 year period, then the Company, in conjunction with the Company appointed tax provider, will re-evaluate the tax support each year to extend it beyond the 3 year period.

 

Code of Conduct:

 

The Company expects that you will adhere, at all times, to its comprehensive Code of Conduct in force for all employees.  This includes, but is not limited to, immigration, income tax, customs, and other regulatory conditions which apply in your assignment and home locations.  Naturally, we would expect that you would not engage in any employment or business which conflicts with Yum’s business interests or engage in any activity which is in direct contrast to the guidelines established in the Code of Conduct.

 

Reassignment:

 

You are subject to reassignment to any of the Company’s foreign or domestic locations, and any reassignments will be subject to future needs of the Company.

 

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Repatriation:

 

Should you terminate while abroad at the Company’s option, the Company will pay repatriation expenses to Detroit, Michigan, USA for your family and your household goods and furniture in accordance with policy guideline.  Expenses to the United States would be paid, provided you return to that point within 60 days of termination.  Of course, repatriation expenses would not be paid if you were to remain in China or if you were to voluntarily terminate to accept employment with another company.

 

Non-Compete & Confidentiality:

 

In signing the Letter of Understanding, you agree that during the period of three (3) months following the termination of this agreement, you shall not:

 

Be engaged by, or seek to obtain employment with a direct Service Restaurant industry competitor.

 

Solicit or endeavor to entice away from Yum China & Yum! Brands Inc. group of companies any other employee or person engaged (whether or not such a person would commit any breach of contract by reason of leaving the service of the Company), or any customer of Yum! Brands Inc.

 

You agree at all times (notwithstanding the termination of this agreement) not to use your own advantage, or to disclose to any third party any information concerning the business or affairs of Yum China & Yum! Brands Inc. group of companies, comprising trade secrets and business maters or information which you know or ought reasonably to have known to be confidential.

 

If at any time any provision of this agreement is or becomes illegal, invalid or unenforceable in any respect, the legality, validity or enforceability of the remaining provision shall not be impaired or affected.

 

Kindly acknowledge your acceptance of the above employment terms by signing and returning the duplicate of this letter.

 

	
Yours   sincerely,
    	
 
    
	
 
    	
 
    
	
/s/   Christabel Lo
    	
 
    
	
Christabel   Lo
    	
 
    
	
Chief   People Officer
    	
 
    
	
Yum!   Brands Inc., China Division
    	
 
    

 

Acknowledgement:

 

I, Ted Stedem, confirm that I have read, understood and agreed to the terms of employment outlined in this letter.

 

	
/s/   Ted Stedem
    	
 
    	
August   3, 2016
    
	
Ted   Stedem
    	
 
    	
Date
    

 

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July 13, 2016

 

Dear Ted,

 

Addendum to Your LOU dated July 13, 2016

 

Children’s Education in China

 

The Company will reimburse you for the actual cost of primary/secondary school tuition, books, laboratory fees, registration and transportation to and from school for eligible children in accordance to the terms stated in the China Expatriate Handbook.

 

Split Family

 

In the event that your children will need to attend school in Singapore for another semester, the Company will cover the tuition & eligible education expenses in addition to the current lease house rental in Singapore.

 

Under the split family arrangement, you will be provided with a service apartment with close proximity to the Yum China office & with rental not exceeding 50% of the house rental & utilities budget for the whole family.

 

All other terms and conditions of employment offered to you remain unchanged.

 

	
Yours sincerely,
    	
 
    	
Agreed and accepted by:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
/s/ Christabel Lo
    	
 
    	
/s/ Ted Stedem
    	
 
    	
August 3, 2016
    
	
Christabel Lo
    	
 
    	
Ted Stedem
    	
 
    	
Date
    
	
Chief People Officer
    	
 
    	
 
    	
 
    	
 
    
	
Yum! Brands Inc., China Division

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