Document:

ex_338451.htm

 

Exhibit 10.23

 

OLYMPIC STEEL, INC.

 

OLYMPIC STEEL, INC. AMENDED AND RESTATED 2007 OMNIBUS INCENTIVE PLAN

 

C-SUITE LONG-TERM INCENTIVE AGREEMENT

 

 

THIS C-SUITE LONG-TERM INCENTIVE AGREEMENT (the “Agreement”), is entered into as of the ___ day of __________________, 2022 (the “Date of Grant”), by and between Olympic Steel, Inc., an Ohio corporation (the “Company”), and __________________________ (the “Grantee”).

 

WITNESSETH:

 

WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) administers the Olympic Steel, Inc. Amended and Restated 2007 Omnibus Incentive Plan, as may be amended from time-to-time, and that certain Olympic Steel, Inc. C-Suite Long-Term Incentive Plan dated January 1, 2022 (the “LTIP” and, collectively, the “Plan”);

 

WHEREAS, the Compensation Committee desires to provide the Grantee with Restricted Share Units, Performance Share Units and the Cash Incentive under the Plan upon the terms and conditions set forth in this Agreement; and

 

WHEREAS, the Compensation Committee has approved the grant of Restricted Share Units, the Performance Share Units, and the Cash Incentive to the Grantee as of the Date of Grant. Unless otherwise specified in this Agreement, capitalized terms shall have the meanings attributed to them under the Plan.

 

NOW, THEREFORE, the Company and the Grantee agree as follows:

 

1.         Definitions. Unless otherwise specified in this Agreement, terms shall have the meanings attributed to them under the Plan.

 

2.         Grant of Restricted Share Units. As of the Date of Grant, the Company grants to the Grantee, upon the terms and conditions set forth in the Plan and this Agreement _________________ (____) Restricted Share Units (“RSUs”). The RSUs give the Grantee the right to receive one (1) Common Share for each RSU subject to the satisfaction of the vesting and other requirements set forth in this Agreement and the Plan. The RSUs are granted in accordance with, and subject to, all the terms, conditions and restrictions of the Plan, which is hereby incorporated by reference in its entirety. The Grantee irrevocably agrees to, and accepts, the terms, conditions and restrictions of the Plan and this Agreement on his or her own behalf and on behalf of any heirs, successors and assigns.

 

3.         Grant of Performance Share Units. As of the Date of Grant, the Company grants to the Grantee, upon the terms and conditions set forth in the Plan and this Agreement _________________ (____) Performance Share Units (“PSUs”). The PSUs give the Grantee the right to receive one (1) Common Share for each PSU subject to the satisfaction of the vesting, performance and other requirements set forth in this Agreement and the Plan as in effect on the Date of Grant. The PSUs are granted in accordance with, and subject to, all the terms, conditions and restrictions of the Plan, which is hereby incorporated by reference in its entirety. The Grantee irrevocably agrees to, and accepts, the terms, conditions and restrictions of the Plan and this Agreement on his or her own behalf and on behalf of any heirs, successors and assigns.

 

4.         Cash Incentive. As of the Date of Grant, the Company grants to the Grantee, upon the terms and conditions set forth in the Plan and this Agreement a service-based Cash Incentive in the amount of $________________ (“Serviced-Based Cash Incentive”). As of the Date of Grant, the Company grants to the Grantee, upon the terms and conditions set forth in the Plan and this Agreement a performance-based Cash Incentive in the amount of $________________ (“Performance-Based Cash Incentive”) (and the Service-Based Cash Incentive and the Performance-Based Cash Incentive are hereinafter referred to collectively as the “Cash Incentive”). The Cash Incentive is granted in accordance with, and subject to, all the terms, conditions and restrictions of the LTIP, which is hereby incorporated by reference in its entirety. The Grantee irrevocably agrees to, and accepts, the terms, conditions and restrictions of the Plan and this Agreement on his or her own behalf and on behalf of any heirs, successors and assigns.

 

 

 

 

5.         Restrictions on RSUs, PSUs and the Cash Incentive. The Grantee cannot sell, transfer, assign, hypothecate or otherwise dispose of the RSUs, PSUs or the Cash Incentive or pledge RSUs, PSUs or the Cash Incentive as collateral for a loan. In addition, the RSUs, PSUs, and the Cash Incentive will be subject to such other restrictions as the Compensation Committee deems necessary or appropriate.

 

6.         Vested Interest. Subject to Section 8 of this Agreement, if the Grantee continues to be an employee of the Company or its Subsidiaries or Affiliates in the same position or a higher position for the period from the Date of Grant through the third anniversary of the Date of Grant (the “Restriction Period”), he or she will be Vested with respect to 100% of the RSUs, the PSUs, and the Cash Incentive on such third anniversary (the “Vesting Date”).

 

7.          Other Vesting; Pro-Ration.

 

a.         If, during the Restriction Period, the Grantee has a “separation from service” due to death or Disability, he or she will be Vested with respect to the pro-rated amount of the RSUs, the PSUs, and the Cash Incentive on the date of the Grantee’s “separation from service”; and

 

b.         If, during the Restriction Period, the Grantee retires from the Company at or after age 62, as of the date of his or her “separation from service”, the Grantee will be Vested with respect to the pro-rated amount of the RSUs, the PSUs, and the Cash Incentive on the date of the Grantee’s “separation from service”.

 

The Compensation Committee shall determine in its sole and exclusive discretion whether the Grantee has experienced a Disability. The issuance of Common Shares underlying the RSUs and PSUs that Vest pursuant to this Section 7 will be made in accordance with Section 10 of this Agreement. For the purposes of this Section 7, the RSUs, PSUs, and Cash Incentive shall be pro-rated as provided in the LTIP, including that the pro-rated portion that is subject to any performance goals shall only fully vest based upon the level at which the applicable performance goals are ultimately satisfied.

 

8.          Forfeiture. If the Compensation Committee determines in its sole and exclusive discretion that the Grantee’s employment with the Company, its Subsidiaries and Affiliates has terminated during the Restriction Period but prior to becoming Vested pursuant to Section 6, for any reason under circumstances other than those described in Section 7 of this Agreement, or during the Restriction Period, the Grantee is demoted, then the Grantee will immediately forfeit his or her RSUs, PSUs and the Cash Incentive and any right to receive Common Shares or cash amounts under this Agreement and the Grantee will have no further interests under this Agreement.

 

9.          Change of Control. In the event of a change-in-control (as defined in the LTIP), the treatment of outstanding Awards shall be governed by Article 2 of the LTIP.

 

10.         Issuance of Common Shares; Payment of Cash Incentive. Subject to Sections 6, 7, 8, and 9 of this Agreement, the Company will deliver to the Grantee (or his or her beneficiary or beneficiaries) the Common Shares subject to the Vested RSUs and PSUs free and clear of any restrictions (except any applicable securities law restrictions), and the cash amounts underlying any vested Cash Incentive, in each case as provided in the LTIP. Notwithstanding the foregoing, to the extent that any period of time following a payment event contemplated in the LTIP spans two calendar years, the payment shall be made in the second of such calendar year.

 

11.         Shareholder Rights After RSUs and PSUs Vest But Before Payment. The Grantee will not have any rights as a Shareholder of the Company with respect to any RSU or PSU prior to the date a Common Share is issued for such RSU and PSU pursuant to Section 9 or 10.

 

12.         Designation of Beneficiary. By properly executing and delivering a Designation of Beneficiary Form to the Company, the Grantee may designate an individual or individuals as his or her beneficiary or beneficiaries under the Plan. In the event that the Grantee fails to properly designate a beneficiary, his or her interests under the Plan will pass to the person or persons in the first of the following classes in which there are any survivors: (a) spouse at the time of death; (b) issue, per stirpes; (c) parents; and (d) the executor or administrator of estate. Except as the Company may determine in its sole and exclusive discretion, a properly completed Designation of Beneficiary Form shall be deemed to revoke all prior designations upon its receipt and approval by the Company’s designated representative.

 

 

 

 

13.         Non-Transferability and Legends. When issued, if the Common Shares have not been registered under the Securities Act of 1933, as amended (the “Act”), they may not be sold, transferred or otherwise disposed of unless a registration statement under the Act with respect to the Common Shares have become effective or unless the Grantee establishes to the satisfaction of the Company that an exemption from such registration is available. The Common Shares will bear a legend stating the substance of such restrictions, as well as any other restrictions the Compensation Committee deems necessary or appropriate.

 

14.         Termination of Agreement. This Agreement will terminate on the earliest of: (a) the date of the Grantee’s termination of employment with the Company and its Subsidiaries and Affiliates for any reason under circumstances other than those set forth in Section 6, (b) the date on which the Grantee’s demotion during the Restriction Period becomes effective, or (c) the date that Common Shares are issued to the Grantee and the Cash Incentive is paid to the Grantee. Any terms or conditions of this Agreement that the Company determines are reasonably necessary to effectuate its purposes will survive the termination of this Agreement.

 

15.         Miscellaneous Provisions.

 

a.         Effect of Corporate Reorganization or Other Changes Affecting Number or Kind of Common Shares. Subject to Section 3.4 of the Plan, the provisions of this Agreement will be applicable to the RSUs, PSUs, Common Shares, or other securities which may be acquired by the Grantee as a result of any dividend or other distribution (as applicable, and whether in the form of cash, Common Shares, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Common Shares or other securities of the Company, issuance of warrants or other rights to purchase Company Shares or other securities of the Company or other similar corporate transaction or event that affects the Common Shares. The Committee shall appropriately adjust the number and kind of shares under the RSUs, PSUs or Common Shares set forth in this Agreement to reflect such a change.

 

b.         Successors, Legal Representatives and Transferability. This Agreement will bind and inure to the benefit of the Company and the Grantee, and their respective successors, assigns and legal representatives. Subject to the Plan, the RSUs and PSUs granted under this Agreement are non-transferable and any attempts to assign, pledge, hypothecate or otherwise alienate or encumber (whether by operation of law or otherwise) shall be null and void.

 

c.         Integration. This Agreement, together with the Plan, constitutes the entire agreement between the Grantee and the Company with respect to the grant of RSUs and PSUs under this Agreement, and may not be modified, amended, renewed or terminated, nor may any term, condition or breach of any term or condition be waived, except pursuant to the terms of the Plan or by a writing signed by the person or persons sought to be bound by such modification, amendment, renewal, termination or waiver. Any waiver of any term, condition or breach thereof will not be a waiver of any other term or condition or of the same term or condition for the future, or of any subsequent breach.

 

d.         Notice. Any notice relating to this grant must be in writing.

 

e.         Separability. In the event of the invalidity of any part or provision of this Agreement, such invalidity will not affect the enforceability of any other part or provision of this Agreement.

 

f.         Section Headings. The section headings of this Agreement are for convenience and reference only and are not intended to define, extend or limit the contents of the sections.

 

g.         Amendment, Waiver and Revocation of Terms. The Compensation Committee may waive any term or condition in this Agreement that could have been excluded on the Date of Grant. No such waiver will be deemed to be a waiver of similar terms under other agreements. The Compensation Committee may amend this Agreement to include or exclude any provision which could have been included in, or excluded from, this Agreement on the Date of Grant, but only with the Grantee’s written consent and taking into account the requirements of Section 409A of the Code. Similarly, the Compensation Committee may revoke this Agreement at any time except that, after execution of the Agreement and its delivery to the Company, revocation may only be accomplished with the Grantee’s written consent.

 

 

 

 

h.         Plan Administration. The Plan is administered by the Compensation Committee, which has sole and exclusive power and discretion to interpret, administer, implement and construe the Plan and this Agreement. All elections, notices and correspondence relating to the Plan should be directed to the Chair of the Compensation Committee at:

 

Olympic Steel, Inc.

22901 Millcreek Blvd., Suite 650

Highland Hills, Ohio 44122

 

i.         Governing Law. Except as may otherwise be provided in the Plan, this Agreement will be governed by, construed and enforced in accordance with the internal laws of the State of Ohio, without giving effect to its principles of conflict of laws.

 

j.         Incapacity. If the Compensation Committee determines that the Grantee is incompetent by reason of physical or mental disability or a person incapable of handling his or her property, the Compensation Committee may deal directly with or direct any payment or distribution to the guardian, legal representative or person having the care and custody of the incompetent or incapable person. The Compensation Committee may require proof of incompetence, incapacity or guardianship, as it may deem appropriate before making any payment or distribution. In the event of a payment or distribution, the Compensation Committee will have no obligation thereafter to monitor or follow the application of the Shares distributed or amounts so paid. Payments or distributions made pursuant to this paragraph shall completely discharge the Company with respect to such payments or distributions.

 

k.         Section 409A. It is the intention of the Company and the Grantee that the Plan and this Agreement shall be deemed to be at all relevant times in compliance with (or exempt from) Section 409A of the Code (“Section 409A”) and all other applicable laws in order to have the Federal income tax effect sought for the Plan and this Agreement, and the Plan and this Agreement shall be so interpreted and are intended to be so administered. In no event, however, shall this section or any other provisions of this Agreement be construed to require the Company or its Subsidiaries and Affiliates to provide any gross-up for the tax consequences of any provisions of, or payments under, this Agreement and the Company shall have no responsibility for tax consequences to Grantee (or his or her beneficiary) resulting from the terms or operation of this Agreement.

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its duly authorized officer and the Grantee has hereunto set his or her hand.

 

	
			GRANTEE:

				 	
			OLYMPIC STEEL, INC.

			
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
			By:

				 
	 	 	 	 	 
	 	 	 	 	 
	
			Print Name:

				 	 	
			fIts:

				 
	 	 	 	 	 
	 	 	 	 	 

	
			Date:

				 	 	
			Date:cqcq_ex101.htm

EXHIBIT 10.1
  
 EMPLOYMENT AGREEMENT
  
 This EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of February 23, 2022 by and between MakingOrg, Inc. (the “Company”), and Junlong He (the “Employee”).
  
 WHEREAS, the Company wishes to employ the Employee as Chief Operating Officer and the Employee wishes to work for the Company as Chief Operating Officer; and
  
 WHEREAS, the Company and the Employee wish to enter into this Agreement on the terms and conditions set forth below.
  
 NOW, THEREFORE, it is hereby agreed as follows:
  
 §1. EMPLOYMENT. The Company hereby employs the Employee, and the Employee hereby accepts employment, upon the terms and subject to the conditions hereinafter set forth.
  
 §2. DUTIES. The Employee shall perform the duties commonly performed by a chief officer officer of a fully-reporting public company, including the expansion of the Company into the global market. The Employee agrees to devote his best efforts to the performance of his duties to the Company. The foregoing shall not be construed to prohibit the Employee from engaging in other work activities, provided that such activities do not significantly interfere or conflict with the performance by the Employee of his duties, responsibilities, or authorities hereunder.
  
 §3. TERM. The Employee’s term of employment hereunder shall commence on the date hereof (the “Commencement Date”) shall continue until the two (2) year anniversary of the Commencement Date (the “Term”), unless earlier terminated pursuant to §6 hereof or extended by mutually agreement of the Company and the Employee.
  
 §4. COMPENSATION AND BENEFITS. In consideration for the Employee’s services hereunder, the Company shall compensate the Employee as follows:
  
 (a) Base Salary. Until the termination of the Employee’s employment hereunder, the Company shall issue the Employee 100,000 shares of restricted common stock of the Company (the “Common Stock”) each year. 
  
 (b) Benefits. Employee shall receive equal benefits, medical and otherwise, as provided to the other officers of the Company. 
  
 §5. EXPENSES. The Company shall reimburse the Employee for all reasonable business expenses authorized by the Company and reasonably and necessarily incurred by the Employee in the performance of his duties, responsibilities, and authorities hereunder. 
  
 §6. TERMINATION. The Employee’s employment hereunder shall commence on the Commencement Date and continue until the earlier of (i) the expiration of the Term, and any mutually agreed upon extension of such term, and (ii) the occurrence of any of the following:
  
 (a) Death or Disability. The Employee’s employment shall terminate upon the death of the Employee during the term of his employment hereunder or, subject to applicable law, at the option of the Company, in the event of the Employee’s disability, upon thirty (30) days’ written notice. The Employee shall be deemed disabled if an independent medical doctor certifies that the Employee has for ninety (90) consecutive or non-consecutive days in any twelve (12) month period been disabled in a manner which has rendered him unable to perform the essential functions of his job duties with or without reasonable accommodation. The Employee will cooperate in submitting to a medical examination for the purpose of certifying disability under this §6(a) if necessary.
  
 	 
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 (b) For Cause. The Company may terminate the Employee’s employment for “Cause” immediately upon written notice by the Company to the Employee. For purposes of this Agreement, “Cause” shall mean:
  
 (i) the Employee has committed any act of fraud, embezzlement, misappropriation or theft in the course of the Employee’s employment with the Company; 
  
 (ii) the Employee has violated any federal, state or local law, ordinance, rule or regulation (other than minor traffic violations or similar offenses) in the course of Employee’s employment with the Company that is materially detrimental to the Company’s business, reputation, or goodwill;
  
 (iii) the Employee has been convicted by a court of competent jurisdiction of, or pleaded guilty or nolo contendere to, any felony or any crime involving moral turpitude while employed by the Company; or
  
 (iv) the Employee has (A) failed to perform his job duties and responsibilities under this Agreement or (B) breached any material provision under this Agreement or any of the Company’s written policies, and such failure or breach is not cured within thirty (30) days after the Company provides written notice to Employee of such failure. 
  
 (c) Termination without Cause. The Company may terminate the Employee’s employment without cause at any time with thirty (30) days’ prior written notice to the Employee. 
  
 (d) Termination by Employee for Good Reason. Subject to the Company’s right to cure as set forth in the last sentence of this §6(d), the Employee may terminate his employment for Good Reason at any time upon thirty (30) days’ prior written notice to the Company. Good Reason shall mean the following: 
  
 (i)   any reduction, without his consent, in the aggregate Base Salary, other compensation owed to the Employee (as specified herein), taken as a whole;
  
 (ii) a change in title or duties inconsistent with Employee’s position that materially reduces the Employee’s position with the Company; or
  
 (iii) any material breach of this Agreement by the Company.
  
 To terminate his employment for Good Reason, the Employee must provide notice to the Company of the Good Reason condition within sixty (60) days of the initial existence of the condition, upon which, the Company shall have a period of thirty (30) days to cure. The Employee must terminate his employment with the Company within ninety (90) days of the initial existence of the condition to terminate for Good Reason. 
  
 (e) Termination by Employee without Good Reason. The Employee may terminate his employment at any time without good reason upon thirty (30) days’ prior written notice to the Company. 
  
 (f) Rights and Remedies on Termination. Upon the termination of Employee’s employment in accordance with §6, the Company shall be required to pay only for (A) any unpaid Base Salary due for the period prior and through the date of termination, and (B) following submission of proper expense reports by the Employee, reimbursement for all expenses properly incurred in accordance with §5 of this Agreement, prior to the date of termination (the items set forth in the foregoing clauses (A), (B) and (C), collectively, the “Accrued Benefits”), and all obligations of the Company to pay salary and other payments to the Employee hereunder shall terminate effective as of the date of such termination. 
  
 	 
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 §7. CONFIDENTIAL INFORMATION, NON-SOLICITATION, NON DISPARAGEMENT; THIRD-PARTY INFORMATION.
  
 (a) Confidentiality. The Employee recognizes and acknowledges that he has acquired and will acquire confidential, proprietary and trade secret information concerning the Company, and its affiliates, including, without limitation, the identities and contact information of customers, merchants, vendors or suppliers and agents, pricing policies, methods of operation, proprietary computer programs, sales, profit, cost and other financial information, market information, business strategies, employee information, technical processes, information processing standards and practices, customer service and service quality standards, trade secrets and other confidential information about customers, merchants, vendors or suppliers (hereinafter called “Confidential Information”). All Confidential Information is a legitimate protectable interest of the Company. The Employee shall not, during or after his term of employment, use or disclose any Confidential Information to any person, firm, corporation, association, or any other entity for any reason or purpose whatsoever, directly or indirectly, except as may be required pursuant to his employment hereunder and for the benefit of the Company or as required by law. In the event of the termination of his employment, whether voluntary or involuntary and whether by the Company or the Employee, or upon request of the Company at any time, the Employee shall deliver to the Company all documents and data pertaining to the Confidential Information and shall not take with him any documents or data of any kind or any reproductions (in whole or in part) or extracts of any items relating to any Confidential Information. The Employee further agrees that upon termination of the Employee’s employment with the Company, the Employee will execute a termination certificate, certifying the return of all Confidential Information. The Employee will not, at any time during or after his employment with the Company, use, copy, publish, summarize, or remove from the Company’s premises Confidential Information, except during his employment to the extent necessary to carry out his duties and responsibilities. 
  
 (b) Non-Solicitation. The Employee hereby agrees that from the Commencement Date through the two year anniversary of the date of the termination of the Employee’s employment with Company, the Employee will not (i) directly or indirectly, as agent, Employee, consultant, representative, stockholder, manager, partner, or in any other capacity, employ or engage, or recruit or solicit the services of, or otherwise contact for the purpose of offering employment or engagement to, any person who is employed or engaged by the Company or had been employed by or engaged by the Company within one year prior to such engagement, recruitment or solicitation; or (ii) directly or indirectly take away, on behalf of himself or any other person or entity, the business of any customer, merchant, vendor or supplier of the Company. The Employee acknowledges that the duration set forth in this §7(b) is reasonable in scope; provided, however, if at any time the provisions of this §7(b) shall be finally determined to be invalid or unenforceable by a court of competent jurisdiction, the parties hereby agree that the court making the determination of invalidity or unenforceability will have the power to reduce the duration of the term or provision to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement will be enforceable as so modified. As used in this §7(b) “Person” means a corporation, an association, a partnership, an organization, a business, a limited liability company, an individual, a government or political subdivision thereof or a governmental agency. The Employee agrees that the restrictive covenants contained in this §7(b) shall be enforceable whether the Employee’s employment is terminated by Employee or the Company.
  
 (c) Non-Disparagement. In consideration of Employee’s services hereunder and the compensation to be paid or provided to the Employee by the Company, each party hereto agrees that it or he will not, during or after the term of Employee’s employment hereunder, make any statement or otherwise take any action that would or might reasonably be interpreted as harmful or disparaging to the other party hereto or its or his stockholders, directors, officers, employees, agents or representatives, as applicable. However, nothing in this §7(c) shall prohibit any party from testifying truthfully in any proceeding or providing truthful information as legally required to provide such information. 
  
 	 
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 (d) Third-Party Information. The Employee acknowledges that the Company received and in the future will receive from third parties said third parties’ confidential information, subject to a duty to maintain the confidentiality of such information and to use it only for certain limited purposes. Employee will treat such information in a manner consistent with the Company’s agreement with such third parties, and without limiting the foregoing, the Employee will not, directly or indirectly, use, make available, sell, disclose or otherwise communicate to any third party, other than in his assigned duties for the benefit of the Company, any such confidential information.
  
 (e) Representations and Warranties. The Employee represents and warrants that (i) his employment with the Company does not and will not breach any agreements with or duties to a former employer or any other third party; (ii) the Employee has no obligations inconsistent with the terms of this Agreement or with his undertaking a relationship with the Company, and the Employee will not enter into any agreement in conflict with this Agreement; (iii) there is no other contract to assign inventions, trademarks, copyrights, ideas, processes, discoveries or other intellectual property that is now in existence between the Employee and any other person or entity. The Employee agrees that he will promptly inform the Company if he becomes aware of any fact that would cause his representations and warranties above to be false.
  
 §8. GENERAL.
  
 (a) Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered personally or if mailed by certified mail, return receipt requested, postage prepaid or sent by facsimile, to the relevant address set forth below, or to such other address as the recipient of such notice or communication shall have specified to the other party hereto in accordance with this §8(a):
  
 If to the Company, to: MakingOrg, Inc.
 618 Brea Canyon Rd. Ste A
 Walnut, CA 91789
  
 If to the Employee, to: Junlong He
  618 Brea Canyon Rd. Ste A
 Walnut, CA 91789
  
 Any such written notice shall be effective (i) if delivered personally, when received, (ii) if sent by overnight courier, when receipted for, (iii) if mailed, five (5) days after being mailed as described above, and (iv) if sent by facsimile, upon generation of a transmission report by the machine from which the facsimile was sent which indicates the date that the facsimile was sent if sent during normal business hours on any business day, otherwise on the next business day following the generation of such report.
  
 (b) Rights Cumulative. The rights and remedies provided herein are cumulative, and the exercise of any right or remedy, whether pursuant hereto, to any other agreement, or to law, shall not preclude or waive the right to exercise any or all other rights and remedies.
  
 (c) Survival of Obligations. Termination of this Agreement or the Employee’s employment shall not affect the Employee’s continuing obligations as set forth in this Agreement.
  
 (d) Severability. If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired. 
  
 (e) Waivers. No delay or omission by either party hereto in exercising any right, power or privilege hereunder shall impair such right, power or privilege, nor shall any single or partial exercise or any such right, power or privilege preclude any further exercise thereof or the exercise of any other right, power or privilege.
  
 	 
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 (f) Withholding. All amounts payable by the Company to the Employee hereunder may be reduced prior to the delivery of such payment to the Employee by an amount sufficient to satisfy any applicable federal, state, local or other tax withholding requirements.
  
 (g) Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
  
 (h) Assignment. The Employee agrees that the Company may assign to another person or entity that succeeds to the business of the Company any of the Company’s rights under this Agreement, provided that the Company shall remain fully liable for all of its obligations hereunder. The Employee may not assign his obligations under this Agreement. 
  
 (i) Assigns. This Agreement shall be binding upon and inure to the benefit of the heirs, successors and permitted assigns of each of the parties hereto.
  
 (j) Entire Agreement; No Oral Modification. This Agreement contains the entire understanding of the parties, supersedes all prior agreements and understandings relating to the subject matter hereof, and shall not be amended except by a written instrument hereafter signed by each of the parties hereto.
  
 (k) Governing Law. This Agreement and the performance hereof shall be construed and governed in accordance with the laws of the State of Florida.
  
 (l) Section 409A. This Agreement is intended to be interpreted and applied so that the payments set forth herein shall either be exempt from the requirements of Section 409A of the Internal Revenue Code, as amended, and the regulations and guidance issued thereunder (“Section 409A”), or shall comply with the requirements of Section 409A. In no event may the Employee, directly or indirectly, designate the calendar year of any payment to be made under this Agreement or otherwise which constitutes a “deferral of compensation” within the meaning of Section 409A. Notwithstanding anything in this Agreement or elsewhere to the contrary, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts that constitute “non-qualified deferred compensation” within the meaning of Section 409A upon or following a termination of the Employee’s employment unless such termination is also a “separation from service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service” within the meaning of Section 409A. For purposes of Section 409A, each payment under this Agreement to the Employee (including any installment payments) shall be deemed a separate payment. With respect to any expense reimbursement provided pursuant to this Agreement (i) the expenses eligible for reimbursement must be incurred during the term of employment, (ii) the amount of expenses eligible for reimbursement during any calendar year will not affect the amount of expenses eligible for reimbursement in any other calendar year, (iii) the reimbursements for expenses for which the Employee is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred, and (iv) the right to payment or reimbursement hereunder may not be liquidated or exchanged for any other benefit. Notwithstanding any provision in this Agreement or elsewhere to the contrary, if on the Employee’s termination of employment, the Employee is deemed to be a “specified employee” within the meaning of Section 409A, any payments due upon a termination of the Employee’s employment under any arrangement that constitutes a “deferral of compensation” within the meaning of Section 409A (whether under this Agreement, any other plan, program, payroll practice or any equity grant) and which do not otherwise qualify under the exemptions under Treasury Regulation section 1.409A-1 (including without limitation, the short-term deferral exemption and the permitted payments under Treasury Regulation section 1.409A-1(b)(9)(iii)(A)), shall be delayed and paid or provided to the Employee in a lump sum (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) on the earlier of (x) the date which is six months and one day after the Employee’s separation from service for any reason other than death, and (y) the date of the Employee’s death, and any remaining payments shall be paid or provided in accordance with the normal payment dates specified for such payment. 
  
 Employee Acknowledgment. The Employee has had the opportunity to consult legal counsel in regard to, and has read and understood, this Agreement. The Employee is fully aware of its legal effect, and has entered into it freely and voluntarily and based on his own judgment and not on any representations or promises other than those contained herein.
  
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 IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto have caused this Employment Agreement to be duly executed as of the date and year first above written.
  
 		By:	/s/ Juanzi Cui 	
	  
	 Name:
	Juanzi Cui	 
	 	Title:	CEO	 
	 	 	 	 
	  
	  
	 /s/ JunLong He
	  

	  
	  
	 Junlong He
	  

  
 	 
	 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00340-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00340-of-00352.parquet"}]]