Document:

Exhibit 10.2

 

THIS NOTE HAS NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THIS NOTE HAS BEEN SOLD IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS.

 

KULR TECHNOLOGY GROUP, INC.

 

Note

 

	No. KULR-2	
        Original Principal Amount:$2,500,000 

	 	 
	Issuance Date:  July 20, 2020	 

 

FOR VALUE RECEIVED,
KULR Technology Group, Inc., a corporation organized and existing under the laws of the State of Delaware (the “Company”),
hereby promises to pay to the order of YAII PN, Ltd. or its registered assigns (the “Holder”) (i) the outstanding
portion of the amount set out above as the Original Principal Amount (as reduced pursuant to the terms hereof pursuant to scheduled
payment, redemption or otherwise, the “Principal”) when due, whether a regularly scheduled principal payment
or upon the Maturity Date (as defined below), acceleration, redemption or otherwise (in each case in accordance with the terms
hereof) and (ii) to pay interest (“Interest”) on any outstanding Principal at the applicable Interest (as set
forth below) from the Issuance Date written above (the “Issuance Date”) until the same is paid, whether a regularly
scheduled interest payment or upon the Maturity Date or acceleration, redemption or otherwise (in each case in accordance with
the terms hereof).

 

This Note (this “Note”)
is being issued pursuant to that certain Note Purchase Agreement dated as of July 20, 2020 (the “Note Purchase Agreement”)
between the Company and the Holder.

 

Certain capitalized terms
used herein but otherwise not defined herein are defined in Section 17 or in the Note Purchase Agreement.

 

(1)              
GENERAL TERMS

 

(a)              
Advance of Original Principal Amount. In consideration for the issuance of this Note on the Issuance Date by the
Company, the Holder shall advance and make available to the Company on the Issuance Date the Original Principal Amount minus the
fees contained in Section 9 (a) of the Note Purchase Agreement, by wire transfer of immediately available funds to the account
indicated by the Company on Schedule I attached hereto.

 

     

     

    

 

(b)              
Maturity Date. The term of this Note shall expire July 20, 2021 (the “Maturity Date”). On the
Maturity Date, the Company shall pay to the Holder an amount in cash representing all then outstanding Principal.

 

(c)              
Payments. On each of the Installment Dates, the Company shall pay to the Holder an amount equal to the relevant Installment
Amount due on such Installment Date as listed on Schedule II hereto. Provided however upon the mutual consent of
the Parties such Installment Amounts may be increased. Installment Amounts under this Note must be paid by wire transfer of immediately
available funds to the account listed on Schedule I hereto (or to any other account specified by the Holder to the
Company on or before the applicable Installment Date by notice given in accordance with Section 7 hereof).

 

(d)              
Interest. No Interest shall accrue on the outstanding Principal balance hereof.

 

(2)              
PREPAYMENT PREMIUM. The Company at its option shall have the right to prepay in cash (a “Prepayment”),
in part or in whole, any Installment Amount prior to such Installment Date or the outstanding Principal Amount under this Note
prior to the Maturity Date. The Company shall pay an amount equal to the amount being prepaid plus a Prepayment premium equal to
10% of the Installment Amount or outstanding Principal Amount being prepaid (“Prepayment Premium”). In order
to make a Prepayment pursuant to this Section, the Company shall provide 3 business days advanced written notice prior to such
Installment or Maturity Date to the Holder of its intention to make a Prepayment (the “Prepayment Notice”) setting
forth the amount it desires to prepay plus the applicable Prepayment Premium (the “Prepayment Amount”). On the
4th Business Day after the Prepayment Notice, the Company shall deliver to the Holder via wire transfer of immediately
available funds the Prepayment Amount with respect to the amount be prepaid by wire transfer of immediately available funds to
the account listed on Schedule I hereto (or to any other account specified by the Holder to the Company by notice
given in accordance with Section 7 hereof).

 

(3)              
DECREASE OF INSTALLMENT AMOUNTS. The Company shall have the right to decrease an Installment Amount by up to 50%
provided however such decreased amount shall be added to the final Installment Amount due on the Maturity Date. Provided however
the Company shall not have the ability to exercise such decrease of an Installment Amount more than 2 times during the term of
this Note. In order to decrease an Installment Amount pursuant to this Section, the Company shall first provide 3 business days
advance written notice prior to an Installment Date to the Holder of its intention to decrease an Installment Amount (the “Decrease
Notice”) setting forth the amount it desires to decrease and such amount that is being added to the Installment Amount
due on the Maturity Date (the “Decrease Amount”).

 

(4)              
REPRESENTATIONS AND WARRANTIES. The Company hereby represents and warrants to the Investor that the following are
true and correct as of the date hereof:

 

    	 	2	 

     

    

 

(a)  
The Company has the requisite corporate power and authority to enter into and perform its obligations under this Note and
any related agreements, in accordance with the terms hereof and thereof, (ii) the execution and delivery of this Note and any related
agreements by the Company and the consummation by it of the transactions contemplated hereby and thereby, have been duly authorized
by the Company’s Board of Directors and no further consent or authorization is required by the Company, its Board of Directors
or its shareholders, (iii) this Note has been duly executed and delivered by the Company, (iv) this Note (assuming the execution
and delivery thereof and acceptance by the Investor and the occurrence of the Issuance Date), constitutes the valid and binding
obligations of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited
by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally, the enforcement of creditors’ rights and remedies.

 

(b)  
The execution, delivery and performance by the Company of its obligations under this Note will not (i) result in a violation
of the Company’s Certificate of Incorporation or (ii) conflict with or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Company or any of its subsidiaries is a party, or result in
a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations
and the rules and regulations of the Primary Market on which the Common Stock is quoted) applicable to the Company or any of its
subsidiaries or by which any material property or asset of the Company is bound or affected and which would cause a Material Adverse
Effect.

 

(5)              
EVENTS OF DEFAULT. 

 

(a)              
An “Event of Default”, wherever used herein, means any one of the following events (whatever the reason
and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of
any court, or any order, rule or regulation of any administrative or governmental body) shall have occurred and be continuing:

 

(i)             
the Company’s failure to pay to the Holder any Installment Amount or Principal Amount when and as due and payable
under this Note, and such failure continues for five (5) days following the date upon which such payment was due;

 

(ii)          
the Company shall commence, or there shall be commenced against the Company under any applicable bankruptcy or insolvency
laws as now or hereafter in effect or any successor thereto, or the Company, or there shall be commenced against the Company, any
other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
or similar law of any jurisdiction whether now or hereafter in effect relating to the Company, which remains un-stayed or un-dismissed
for a period of 61 days; or the Company is adjudicated insolvent or bankrupt pursuant to a final, non-appealable order; or any
order of relief or other order approving any such case or proceeding is entered; or the Company suffers any appointment of any
custodian, private or court appointed receiver or the like for it or any substantial part of its property which continues un-discharged
or un-stayed for a period of 61 days; or the Company makes a general assignment for the benefit of creditors; or the Company shall
admit in writing that it is unable to pay its debts generally as they become due; or the Company shall call a meeting of its creditors
with a view to arranging a composition, adjustment or restructuring of its debts.

 

    	 	3	 

     

    

 

(iii)        
the Common Stock of the Company ceases to be quoted or listed for trading on the Principal Market and shall not again be
quoted or listed for trading on any Principal Market within fifteen Trading Days of such delisting;

 

(iv)         
the Company is a party to any agreement memorializing (1) the consummation of any transaction or event (whether by means
of a share exchange or tender offer applicable to its shares of common stock par value $0.0001 (the “Common Stock”),
a liquidation, consolidation, recapitalization, reclassification, combination or merger of the Company or a sale, lease or other
transfer of all or substantially all of the consolidated assets of the Company) or a series of related transactions or events pursuant
to which all of the outstanding Common Stock are exchanged for, converted into or constitute solely the right to receive, cash,
securities or other property, (2) a consolidation or merger in which the Company is not the surviving corporation, or (3) a sale,
assignment, transfer, conveyance or other disposal of all or substantially all of the properties or assets of the Company to another
person or entity (each of (1), (2) and (3) a “Change in Control”) unless in connection with such Change in Control,
all Principal and accrued and unpaid Interest due under this Note will be paid in full or the Holder consents to such Change in
Control;

 

(v)           
the Company shall fail to observe or perform any other material covenant, agreement or warranty contained in, or otherwise
commit any material breach or default of any provision of this Note or the Note Purchase Agreement.

 

(vi)         
 The Company shall fail to observe or perform any material covenant, agreement or warrant contained in, or otherwise commit
any material breach or default of any provision of the Standby Equity Distribution Agreement dated February 27, 2020 between the
Company and the Holders (the “SEDA”) which is not cured within the time prescribed in the SEDA, as applicable,
or if not so prescribed, within thirty days after notice to the Company by the Holder of such material failure, breach or default;

 

(vii)      
The Company shall terminate the SEDA; or

 

(viii)    
an event of default by the Company under any other material obligation, instrument, note or agreement for borrowed money
occurring after the Issuance Date of this Note and continuing beyond any applicable notice and/or grace period, and as a result
of which the obligations of the Company, under such material obligation, instrument, note or agreement have been accelerated..

 

(6)              
REMEDY UPON DEFAULT. During the time that any portion of this Note is outstanding, if any Event of Default has occurred,
the Holder, by notice in writing to the Company, may at any time and from time to time declare the full unpaid Principal of this
Note or any portion thereof, to be due and payable immediately without necessity of further action (the “Accelerated Amount”).

 

    	 	4	 

     

    

 

(7)              
REISSUANCE OF THIS NOTE. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of an indemnification undertaking
by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the
Company shall execute and deliver to the Holder a new Note representing the outstanding Principal which Note (i) shall be of like
tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding (iii)
shall have an issuance date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, (iv)
shall have the same rights and conditions as this Note, and (v) shall represent accrued and unpaid Interest from the Issuance Date.

 

(8)  
NOTICES. Any notices, consents, waivers or other communications required or permitted to be given under the terms
of this Agreement must be in writing and will be deemed to have been delivered upon: (i) receipt, when delivered personally, (ii)
1 Business Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed
to the party to receive the same, or (iii) receipt, when sent by electronic mail (provided that the electronic mail transmission
is not returned in error or the sender is not otherwise notified of any error in transmission. The addresses and email addresses
for such communications shall be:

 

 

	If to the Company, to:	
        

        KULR Technology Group, Inc.

	 	1999 S. Bascom Avenue – Suite 700
	 	Campbell, CA 95008
	 	Attention:      Michael Mo, CEO
	 	Telephone:    (408)663-5247
	 	Email:  michael.mo@kulrtechnology.com
	 	 
	
        

        With a copy to:
	
        

        Sichenzia Ross Ference LLP

        1185 Avenue of the Americas, 37th Floor

        New York, NY 10036

        Attention: Jay Yamamoto, Esq.

        Telephone: (646) 810-0604

        Email: jyamamoto@srf.law

 

	If to the Holder:	YAII PN, Ltd.
	 	1012 Springfield Ave
	 	Mountainside, New Jersey 07092
	 	Attention:Mark Angelo
	 	
        Telephone:(201) 985-8300

        Email:mangelo@yorkvilleadvisors.com

	 	 
	With a copy to:	David Gonzalez, Esq.
	 	1012 Springfield Ave
	 	Mountainside, New Jersey 07092
	 	Telephone:(201) 985-8300
	 	Email:dgonzalez@yorkvilleadvisors.com
	 	 

 

    	 	5	 

     

    

 

or at such other address and/or electronic
email address and/or to the attention of such other person as the recipient party has specified by written notice given to each
other party 3 Business Days prior to the effectiveness of such change. Written confirmation of receipt (i) given by the recipient
of such notice, consent, waiver or other communication, (ii) mechanically or electronically generated by the sender’s computer
containing the time, date, recipient’s electronic mail address and the text of such electronic mail or (iii) provided by
a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by electronic mail
or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(9)              
No provision of this Note shall alter or impair the obligations of the Company, which are absolute and unconditional, to
pay the Principal on, this Note at the time, place, and rate, and in the currency, herein prescribed. This Note is a direct obligation
of the Company. As long as this Note is outstanding, the Company shall not , without the consent of the Holder, (i) amend its articles
of Association or Memorandum of Association so as to adversely affect any rights of the Holder under this Note; or (ii) enter into
any agreement with respect to any of the foregoing.

 

(10)          
This Note shall not entitle the Holder to any of the rights of a shareholder of the Company, including without limitation,
the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of shareholders
or any other proceedings of the Company.

 

(11)          
This Note shall be governed by and interpreted in accordance with the laws of the State of New Jersey, without regard to
the principles of conflict of laws. Each of the parties consents to the jurisdiction of the of the Superior Court of the State
of New Jersey, sitting in Union County, New Jersey and the United States District Court for the District of New Jersey, sitting
in Newark, New Jersey, in connection with any dispute arising under this Note and hereby waives, to the maximum extent permitted
by law, any objection, including any objection based on forum non conveniens to the bringing of any such proceeding in such jurisdictions.

 

(12)          
If an Event of Default has occurred, then the Company shall reimburse the Holder promptly for all out-of-pocket fees, costs
and expenses, including, without limitation, reasonable attorneys’ fees and expenses incurred by the Holder in any action
for the collecting of any sums which become due and payable to the Holder in accordance with the terms of this Note.

 

(13)          
Any waiver by the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of
any other breach of such provision or of any breach of any other provision of this Note. The failure of the Holder to insist upon
strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term of this Note. Any waiver must be in writing.

 

    	 	6	 

     

    

 

(14)          
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and
if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and
circumstances. If it shall be found that any interest or other amount deemed interest due hereunder shall violate applicable laws
governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate
of interest. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead,
or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would
prohibit or forgive the Company from paying all or any portion of the Principal of or interest on this Note as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Note, and
the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants
that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but
will suffer and permit the execution of every such as though no such law had been enacted.

 

(15)          
Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be
made on the next succeeding Business Day.

 

(16)          
Assignment of this Note by the Company shall be prohibited without the prior written consent of the Holder. Prior to the
Maturity Date, the Holder shall not sell, transfer, negotiate or otherwise make any disposition of this Note or any portion thereof
without the prior written consent of the Company.

 

(17)          
THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’
ACCEPTANCE OF THIS AGREEMENT.

 

(18)          
CERTAIN DEFINITIONS For purposes of this Note, the following terms shall have the following meanings:

 

(a)              
 “Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday
in the United States or a day on which banking institutions are authorized or required by law or other government action to close.

 

(b)              
“Installment Amount” means the principal and interest payment due on an Installment Date as set forth
on Schedule II hereto.

 

(c)              
“Installment Date” means each date on which Installment Amounts are due to be paid in accordance with
Schedule II hereto.

 

 

[Signature Page Follows]

 

 

    	 	7	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed by a duly authorized officer as of the date first set forth above.

 

 

	 	COMPANY:
	 	KULR TECHNOLOGY GROUP, INC.

 

	 	By:	 

	 	
        Name: Michael Mo

        Title: Chief Executive Officer and Chairman

 

 

  

     

     

    

 

Schedule I

 

 

(Company’s Account Information)

 

Account Name: KULR Technology Group, Inc

Account Number: 3251 3777 1835

Bank Name: Bank of America

Bank ABA Routing Number: 121000358

Bank Address: 222
Broadway New York, NY 10038 

Company Address: 1999 S. Bascom
Ave. Suite 700. Campbell, CA. 95008

 

(Holder’s Account Information)

 

*Account Currency: USD 

 

	Intermediary Bank:	The Bank of New York Mellon
	   	One Wall Street  
	   	New York, NY10286

Routing # 021 000 018

Swift Code: IRVTUS3N

Account # 890 1050 210

	Beneficiary Bank:	DMS Bank and Trust Ltd.
	 	20 Genesis Close
	 	Grand Cayman KY1-1104

Swift Code: CAYIKYKY

 

	Beneficiary Account Name:	YA II PN, Ltd
	   	1012 Springfield Avenue
	  	Mountainside, NJ 07092

 

Beneficiary Account # 01680100

 

     

     

    

 

Schedule II

Repayment Schedule 

 

 

	August 1, 2020	$250,000
	September 1, 2020	$250,000
	October 1, 2020	$250,000
	November 1, 2020	$250,000
	December 1, 2020	$250,000
	January 1, 2021	$250,000
	February 1, 2020	$250,000
	March 1, 2020	$250,000
	April 1, 2020	$250,000
	May 1, 2020	$250,000exhibit10acfoofferletter

                                                                                          Exhibit 10(a)                                                                                                                                                                 Wells Fargo & Company                                                                             wellsfargo.com                    July 17, 2020      Michael Santomassimo         Subject: Offer of Employment       Dear Mike,      Congratulations! I am pleased to extend you an offer of employment with Wells Fargo & Company for the   position of Chief Financial Officer reporting directly to me.  Your start date will be in the fall of 2020 at our   location in New York City, NY.                BACKGROUND CHECK   This offer is contingent upon completion and successful outcome of a background investigation as described in   the Conditions of Employment at Wells Fargo section of this letter. Your start date may be affected by the time it   takes to complete this process.      ANNUAL COMPENSATION   As we discussed, your annual base salary rate will be $1,750,000, less applicable taxes and withholdings. You   will receive your base salary every two weeks, on the Friday following the end of each two-week pay period. Your   base salary compensates you for all hours worked in any given week and your biweekly base salary will be   calculated based on the exact number of business days within the calendar year.       For the 2020 performance year, your minimum variable compensation will be $9,250,000, which will be   comprised of an annual cash bonus and long-term incentive awards, as described below. You will be eligible for   an annual bonus under the Wells Fargo Bonus Plan (the “Bonus Plan”), which is generally payable in March of   the year following the performance year, based on the successful completion of performance objectives and   subject to the terms and conditions of the Bonus Plan, including your active employment on the bonus payment   date. For the 2020 performance year, your target bonus eligibility will be $1,750,000. Each year, you will play a   part in setting your performance objectives. Incentive compensation awards under the Bonus Plan are   discretionary and may be paid in the form of cash, long-term equity, long-term cash, or a combination thereof, at   Wells Fargo’s discretion. Final determination of your earned award under the Bonus Plan will be at the   discretion of the Human Resources Committee (“HRC”) of the Board of Directors.                The determination and payment of bonus compensation and other forms of compensation described in this offer   are subject to the conditions and restrictions imposed under applicable laws, rules, regulations and orders. Your   rights to, or receipt of, compensation pursuant to this offer may be limited, modified, delayed, cancelled or   recovered to ensure compliance with all such applicable laws, rules, regulations, orders and guidance that may   be issued thereunder.               LONG-TERM INCENTIVE AWARDS   As an important component of your annual compensation, you are also eligible to receive annual long-term   incentive awards each year beginning with performance year 2020 in the form of performance shares, restricted   share rights (“RSRs”) or other forms of long-term awards, or a combination thereof. Annual awards are   determined by, and subject to the approval of, the HRC. As we discussed, awards are at the Company’s   discretion but a reasonable expectation for this grant would be $7,500,000 in estimated target value, which   grant will be subject to the performance criteria, vesting period, and other terms and conditions outlined in the   applicable award agreement provided once the award is approved.       Note: Equity awards will be made under the Wells Fargo Long Term Incentive Compensation Plan (“LTICP”).   Awards under the LTICP are conditioned upon and subject to the approval of the HRC and are subject to such   terms and conditions as approved by the HRC in accordance with the provisions of the LTICP as reflected in the   applicable award agreement. To align the recipient’s interests with the interests of shareholders generally equity         

 

 awards at Wells Fargo are subject to a stock ownership obligation. You will receive specific detailed grant terms   and information once the award has been approved by the HRC.      BUY-OUT AWARD  We would like to offer you a cash payment and one-time equity award in the form of RSRs to replace compensation  forfeited resulting from your departure from your prior employer, with an initial valuation of $900,000 in the form  of a cash sign-on and $5,422,030 in RSRs (“Buy-out Award”). The final amount of the Buy-out Award will be based  on the average of the high and low stock prices of your prior employer on your date of hire, multiplied by the  number of unvested shares/units that are being forfeited in connection with your departure from your prior  employer, determined at the discretion of the Company and may be adjusted to reflect other relevant factors  (“Award Value”). The number of RSRs ultimately granted will be based on the Award Value and the average of the  high and low stock prices of Wells Fargo Common Stock on your date of hire. This award is also subject to your  providing valid documentation within 60 days of your start date, confirming your forfeited long-term incentive  compensation from your prior employer. These RSRs are subject to your active employment with Wells Fargo on  the Grant Date and approval by the HRC. We will submit the recommendation at the first regularly scheduled HRC  meeting after your employment start date, with the grant effective on the date of HRC approval (the “Grant Date”).  Once awarded, these RSRs will vest according to the following schedule: 40% in February 2022 and 60% in  February 2023 and may be subject to performance conditions as determined by the HRC.    The cash sign-on will be subject to applicable taxes and withholdings and subject to your continued employment  and good standing on the pay date, and upon completion of one full year of employment as described below.   Although you acknowledge that you are an at-will employee and not being employed for any particular length of  time, you understand that this cash sign-on will be made in anticipation of your remaining with Wells Fargo for  at least 12 months.      You  understand  this  payment  will  be  made as  soon  as  administratively  possible,  following  your  first  day  of  employment with the Company. However, you understand and agree that your eligibility to earn this cash sign-on  is contingent on completion of one full year of employment. Therefore, in consideration of this offer of employment  and the cash sign-on, you agree to reimburse the Company for all or a portion of the cash sign-on (in each case, net  of applicable taxes and withholdings) if, during your first year of employment, your employment is either voluntarily  terminated by you for any reason, or involuntarily terminated by the Company for Cause1 as follows:          If you voluntarily terminate your employment for any reason during your first year of employment, you agree       to reimburse the Company 100% of the cash sign-0n.        If you are involuntarily terminated by the Company for  Cause, you agree to reimburse the Company according       to the following schedule:                       Less than 3 Months in the position:          % of Cash Sign-On Owed to the Company: 75%          3 but less than 6 Months in the position:    % of Cash Sign-On Owed to the Company: 50%         6 but less than 12 Months in the position:   % of Cash Sign-On Owed to the Company: 25%           You agree to repay the Company the amount it computes to be due under this agreement on or before the last day  of  your  employment  at  the  Company.  To  the  fullest  extent  permitted  under  applicable  law,  you  authorize  the  Company  to  deduct  up  to  the  entire  amount  due  from  any  amount  owed  to  you  by  the  Company  or  any  of  its  subsidiaries or affiliates. Amounts owed to you include, but are not limited to wages, bonuses, incentives or any  other form of compensation. If no such deductions are made, or if the deductions made are insufficient to repay the  entire amount owed by you, you understand and agree your obligation to pay the Company will continue until you  have fully  paid  all  amounts  owed  pursuant  to  this  agreement.  You  also  specifically  agree  that  the  terms  of  this  agreement may not be modified except in writing and no waiver, release or forgiveness of your indebtedness will be  valid unless in writing and signed by an officer of the Company.                                                                                                         1 For purposes of this agreement, Cause means (1) your continued failure to substantially perform your duties; (2) your conviction of a crime   involving dishonesty or breach of trust, conviction of a felony, or commission of any act that makes you ineligible for coverage under the   Company's fidelity bond or otherwise makes you ineligible for continued employment; or (3) your violation of the Company’s policies,   including but not limited to Wells Fargo’s Code of Ethics and Business Conduct (or the Code applicable to your line of business), Anti-Bribery   and Corruption Policy, Information Security Policies, and Risk Management Accountability Policy.  For the avoidance of doubt, an event or   conduct constituting Cause could take place before or after your termination of employment. 

 

                                                                                                                                      DEFERRED COMPENSATION   You may also be eligible to participate in Wells Fargo's non-qualified deferred compensation plan for highly   compensated employees.  Under this plan you may elect to defer up to 80% of your base salary and   incentive/bonus compensation. You will have 30 days from your start date to enroll for the current plan year,   otherwise, you will need to wait until the next enrollment period.        BENEFITS PACKAGE   Wells Fargo provides a comprehensive benefits to our employees. For most benefit programs, coverage becomes   effective the first of the month following one full calendar month of employment. We will provide you with more   detailed information soon. If you haven't received your benefits materials by the end of your first workweek, call   the Wells Fargo dedicated support center for employees, at 1-877-HRWELLS (1-877-479-3557) to order a   benefits enrollment kit. If you don’t enroll during your initial benefits enrollment period, your next annual   enrollment opportunity will be for benefits effective the following year.    OFFICER TITLE  It is our intention to submit a recommendation for a Senior Executive Vice President title after your employment  start-date with Wells Fargo. Senior management must approve or recommend corporate titles, which may need to  be approved by Wells Fargo or any affiliates’ Board of Directors.    You  will  quickly  discover  that  key  values  at  Wells  Fargo  include  accountability,  integrity,  customer  focus,  and  diversity. As a financial services institution, we are entrusted with confidential information and the resources of our  customers – trust we take very seriously. We also have a responsibility as an employer to share with you some basic  conditions of employment at Wells Fargo – you’ll find those within this letter; please read them carefully.      NEXT STEPS   When you start work, you will receive access to the Handbook for Wells Fargo Team Members, tax forms, and   additional paperwork that you will need to get started in your new career. On your first day, please be sure to   bring acceptable documents for establishing your employment eligibility as outlined in the Conditions of   Employment at the end of this letter. You will need these documents in order to complete your new hire   paperwork.      Once again, I would like to warmly welcome you to Wells Fargo! Once you have completed your review of the   offer letter and Conditions of Employment, as an indication of your acceptance of our offer, please sign the last   page of this document.       If you have any questions, please contact me. We look forward to having you join us!    Sincerely,    Charlie Scharf  Chief Executive Officer & President                                   

 

 Conditions of Employment at Wells Fargo   The offer letter, including these Conditions of Employment, the Trade Secrets Agreement, and the Arbitration  Agreement, constitutes the entire agreement between you and Wells Fargo. No other guarantees or promises of any  kind have been made concerning the terms of your employment. Only an officer of Wells Fargo, at the level of  executive vice president or higher, who is authorized by the senior Human Resources manager for your region or line  of business may change or modify these terms.     Your employment with Wells Fargo has no specified term or length. Both you and Wells Fargo have the right to  terminate your employment at any time, with or without advance notice and with or without cause. This is called  "employment at will."    This offer is contingent upon your ability to provide, on or before the first day of employment, documentation that  verifies your identification and eligibility to work in the United States, as outlined by the Immigration Reform and  Control Act of 1986. As a result of federal legislation, and because Wells Fargo is a federal contractor, this offer is also  contingent upon your ability to successfully pass the federal E-Verify system check within the requisite period of time  permitted by the E-Verify rules. Further, it does not include an offer by Wells Fargo for visa sponsorship.    As part of the process to verify your identity and eligibility to work in the United States, you should take the following  steps to be prepared on your first day of employment:   1.     Access the electronic Form I-9, Employment Eligibility Verification, using the Cisive system.   2.     Follow the instructions for completing section 1 of Form I-9.     3.     Determine which acceptable document(s) you will provide on your first day of employment to verify your identity  and eligibility to work in the United States. The lists of acceptable documents are on Form I-9. Verify that the  documents meet the unexpired date(s) requirement under Form I-9 rules.   4.     Bring the original document(s) (including a picture ID for E-Verify identification purposes) on your first day and  each day thereafter until your manager (or manager's designee) completes the review and verification process.      Additionally, all new hires and rehires are required to complete a Team Member Acknowledgment. The form outlines  your responsibilities to adhere to the provisions set forth in the Wells Fargo Team Member Handbook, Code of Ethics  and Business Conduct, Risk Management Accountability Policy, Information Security Policy overview and the  Electronic Human Resources systems authorization. The Code of Ethics policies include restrictions on Personal  Conflict of Interest activities, including certain outside activities and a prohibition from engaging in derivative and  hedging transactions involving Wells Fargo securities. If you need more information about the policies to understand  the impact of these restrictions, please discuss with the hiring manager before accepting this offer.    Section 19 of the Federal Deposit Insurance Act prohibits Wells Fargo from hiring any person who has been convicted of  a criminal act involving dishonesty, breach of trust, or money laundering (including distribution, manufacturing, or  trafficking in controlled substances), unless the person has received prior written consent from the FDIC or the offense  meets the FDIC’s de minimis criteria. Under Section 19, disqualifying criminal records include convictions that have not  otherwise been completely expunged as well as entry into pre-trial diversion or similar programs with respect to such  crimes.  Information  regarding  Section  19  as  well  as  the  FDIC  waiver  process  can  be  found  on  the  FDIC’s  website  (https://www.fdic.gov/regulations/laws/FORMS/section19.html).  All  team  members  must  also  meet  Wells  Fargo’s  fidelity bond requirements. Therefore, this offer is contingent on the results of your background investigation (both  domestic and international, if applicable) which includes fingerprinting, required regulatory reviews and any ongoing  screening for continued employment.                To protect Wells Fargo’s intellectual property and human capital, all new hires are required to complete a corporate  Trade Secrets Agreement. The Trade Secrets Agreement contains an agreement not to disclose Wells Fargo trade  secrets and confidential and proprietary information, an agreement for non-solicitation, and assignment of inventions  to Wells Fargo if the inventions were made or conceived while you were employed by Wells Fargo.    In addition, when employment disputes cannot be resolved internally, it is helpful to do so through private arbitration  instead of court. All new hires are required to complete an Arbitration Agreement in which you and Wells Fargo  mutually agree to final and binding arbitration of your employment disputes when they cannot be resolved internally.     

 

                                                                                                               By signing and submitting this offer letter, you accept and agree to all terms and conditions of this offer of  employment.        Accepted and agreed to by:                         /s/ Michael P. Santomassimo_________                                7/17/2020____   Signature for Michael Santomassimo                                  Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00311-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00311-of-00352.parquet"}]]