Document:

exhibit104_azusoffer

                                                                        Exhibit 10.4   Ryan Azus   VIA EMAIL   Re:   Employment Terms   Dear Ryan:   I am pleased to offer you employment with Zoom Video Communications, Inc. (“Zoom”), on the  terms set forth in this offer letter agreement:    2. Position. You will serve as Chief Revenue Officer, and you will report to Eric Yuan, CEO.    This is a full-time exempt position. While you render services to Zoom, you will not engage    in any other employment, consulting or other business activity (whether full-time or part-time)    that  would  create  a  conflict  of  interest  with  Zoom.  By  signing  this  letter  agreement,  you    confirm  that  you  have  no  contractual  commitments  or  other  legal  obligations  that  would    prohibit you from performing your duties for Zoom.  Your anticipated start date with Zoom is    August 5, 2019 (such actual start date, the “Start Date”).  2. Cash Compensation. Zoom will pay you a salary at the rate of $425,000 per year, payable    in accordance with Zoom’s standard payroll schedule. You will also be eligible to earn and    receive incentive compensation in the total target amount per year of 100% of your annual    salary  rate,  pursuant  to  the  terms  and  conditions  of  applicable  Zoom  incentive    compensation plan(s), which may be paid annually or quarterly or quarterly as determined    by Zoom consistent with such plan(s). The amount of the incentive compensation, if any,    that you earn will be determined based on Zoom’s performance and meeting performance    targets  established  by  Zoom  pursuant  to  Zoom’s  applicable  incentive  compensation    plan(s), and will be pro-rated for your services to Zoom during the applicable performance    period.  No amount of any incentive compensation is guaranteed and you must satisfy any    and all conditions established by Zoom for such incentive compensation program to earn    and be eligible for payment of incentive compensation.  Not withstanding this, for the first    three (3) months of your employment (“Draw Period”) and based on you working through    this period, you will be provided a non-recoverable draw of 100% of your monthly variable    target commissions, less applicable taxes, deductions and withholdings. The monthly draw    will equate to 1/12 of your annual target variable as indicated in this offer letter. During    the Draw Period, you will be paid the greater of your earned commissions or the draw in    a given month.  3. Employee  Benefits.  As  a  regular  Zoom  employee,  you  will  be  eligible  to  participate  in  a    number of company-sponsored benefits offered to employees from time to time, subject to the    terms and conditions of the applicable plans and policies.   204155783 v4 

 

     4. Equity  and  Change  in  Control  Severance  Benefits.  Subject to  the  approval  of  the     Compensation Committee of the Board of Directors of Zoom, you will be granted a restricted     stock unit award to be issued 350,000 shares of Zoom’s Class A common stock (“RSUs”)     under and subject to the terms of the Company’s 2019 Equity Incentive Plan (the “Equity     Plan”) and a restricted stock unit award agreement thereunder. The RSUs will be granted to     you following your Start Date in accordance with Zoom’s policy for the timing of RSU awards.     25% of the RSUs shall vest on the one (1) year anniversary of the grant date, and an additional     6.25% of the RSUs shall vest each quarter thereafter, subject to you remaining in Continuous     Service (as defined in the Equity Plan) through each such date.             Should (1) Zoom be subject to a Change in Control during your Continuous Service (as defined     in the Equity Plan) and (2) you be subject to an Involuntary Termination upon or within one     year following the effective date of such Change in Control (such events in (1) and (2), the     “CIC Termination”), then Zoom will accelerate the vesting of any then-outstanding RSUs and     any other then-outstanding subsequent equity compensation awards granted to you under the     Equity Plan or a successor plan thereto prior to the date of such CIC Termination (“Subsequent     Awards”)  such  that  100%  of  your  then-outstanding  RSUs  and  Subsequent  Awards  (if     applicable)  will  be  deemed  immediately  vested  and  exercisable  (as  applicable)  as  of  your     Involuntary Termination date.           In addition, should a CIC Termination occur, you will receive as severance benefits:          (a) A  lump  sum  cash  payment  equal  to  six  months  of  your  then-current  base  salary,           ignoring  any  decrease  in  base  salary  that  would  form  the  basis  for  your  right  to           Resignation for Good Reason, if any, paid in a lump sum no later than the earliest of           (i) 30 days following the effective date of the Release and (ii) March 15 of the year           following the year in which your CIC Termination occurs.                   (b) if  you  timely  elect  continued  coverage  under  the  Consolidated  Omnibus  Budget           Reconciliation Act of 1985 (“COBRA”), Zoom will pay your COBRA premiums to           continue  your  coverage  (including  coverage  for  your  eligible  dependents,  if           applicable) through the end of the six-month period following your CIC Termination           (the  “COBRA  Premium  Period”); provided,  however,  that  the  payment  of  such           COBRA premiums will immediately cease if during the COBRA Premium Period you           become eligible for group health insurance coverage through a new employer or you           cease to be eligible for COBRA continuation coverage for any reason, including plan           termination.  In the event you become covered under another employer's group health           plan or otherwise cease to be eligible for COBRA during the COBRA Premium Period,           you must immediately notify Zoom of such event.  Notwithstanding the foregoing, if           Zoom  determines,  in  its  sole  discretion,  that  it  cannot  pay  the  COBRA  premiums           without  potentially  incurring  financial  costs  or  penalties  under  applicable  law           (including,  without  limitation,  Section  2716  of  the  Public  Health  Service Act),           regardless  of  whether  you  or  your  dependents  elect  or  are  eligible  for  COBRA           coverage, Zoom will instead shall pay to you, on the first day of each calendar month           during  the  COBRA  Premium  Period,  a  fully  taxable  cash  payment  equal  to  the     204155783 v4   

 

         applicable COBRA premiums for that month, subject to required payroll deductions           and withholdings (such amount, the “Special Cash Payment”), for the remainder of the           COBRA Premium Period.  You may, but are not obligated to, use such Special Cash           Payments toward the cost of COBRA.  For purposes of this Section 4(b), (i) references           to COBRA shall be deemed to refer also to analogous provisions of state law and (ii)           any  applicable  insurance  premiums  that  are  paid  by  Zoom  shall  not  include  any           amounts  payable  by  you  under an  Internal  Revenue  Code  Section  125  health  care           reimbursement plan, which amounts, if any, are your sole responsibility.      The receipt of any cash and COBRA premium benefits provided in this Section 4 is subject to     (i) your continued compliance with the terms of this and your other agreements with Zoom,     and (ii) you timely executing, and delivering to Zoom a general release of claims in such form     as provided by Zoom to you on or prior to the date of your CIC Termination (the “Release”)     within the time period set forth therein, and not revoking such Release so that it becomes     effective within the time period specified therein, but no later than 60 days following your CIC     Termination.  The form of required Release will be consistent with the terms of this letter and     impose no material obligations on you other than a general release of claims and mutual non-    disparagement.              For purposes of this offer letter agreement, the following definitions shall apply:             ●  “Cause”  means  your:  (a)  unauthorized  use  or  disclosure of  Zoom’s  confidential           information or trade secrets, which use or disclosure causes or could cause material           harm  to  Zoom,  (b)  material  breach  of  any  agreement  between  you  and  Zoom,           (c) material failure to comply with Zoom’s written policies or rules, (d) conviction of,           or plea of “guilty” or “no contest” to, a felony under the laws of the United States or           any State, (e) gross negligence or willful misconduct, (f) willful and continuing failure           to  perform  assigned  duties  after  receiving  written  notification of  the  failure  from           Zoom’s  Board  of  Directors,  or  (g)  failure  to  cooperate  in  good  faith  with  a           governmental or internal investigation of Zoom or its directors, officers or employees,           if Zoom has requested your cooperation.                   ●  “Change in Control” means: (a) the consummation of a merger or consolidation of           Zoom  with  or  into  another  entity,  or  any  corporate  reorganization  in  which  the           stockholders  of  Zoom  immediately  prior  to  such  merger,  consolidation  or           reorganization own less than fifty percent (50%) of the voting power of the surviving           entity  immediately  after  such  consolidation,  merger  or  reorganization,  (b)  a  sale  or           other disposition of all or substantially all of the assets of Zoom, or (c) the dissolution,           liquidation  or  winding  up  of  Zoom.  The  foregoing  notwithstanding,  a  Change  of           Control shall not include any transaction or series of transactions principally for bona           fide equity financing purposes in which cash is received by Zoom or indebtedness of           Zoom is cancelled or converted or a combination thereof.          ●  “Involuntary  Termination”  means  either  (a)  your  Termination  Without  Cause  or           (b) your Resignation for Good Reason.       204155783 v4   

 

      ●  “Resignation for Good Reason” means a Separation from Zoom as a result of your           resignation  within  12  months  after  one  of  the following  conditions  has  come  into           existence without your consent:                         o  A reduction in your base salary by more than 5%;              o  Any material breach by Zoom of any material written agreement between you                 and Zoom; provided, that, the foregoing shall not include (i) any agreement that                 is  among  Zoom,  you  and  any  third  party  or  parties  or  (ii)  Zoom’s  written                 policies or rules;              o  A material diminution of your authority, duties or responsibilities (provided,                 however, that a change in job position, including a change in title, shall not be                 deemed  a  “material  diminution”  in  and  of  itself  unless  your  new  duties  are                 materially reduced from the prior duties); or              o  A relocation of your principal workplace to a place that increases your one-way                 commute by more than 40 miles as compared to your then-current principal                 workplace immediately prior to such relocation.                      A Resignation for Good Reason will not be deemed to have occurred unless you give           Zoom written notice of the condition setting forth the basis for your resignation within           90 days after the condition comes into existence and Zoom fails to remedy the condition           within 30 days after receiving your written notice.              ●  “Separation” means a “separation from service,” as defined in the regulations under           Section 409A of the Code.                   ●  “Termination Without Cause” means a Separation as a result of a termination of your           employment  by  Zoom  without  Cause  (and  other  than  as  a  result  of  your  death  or           disability), provided you are willing and able to continue performing services within           the meaning of Treasury Regulation 1.409A-1(n)(1).              References  in  this  Section  to  Zoom  shall  refer  to  any  successor  entity  to  Zoom           following a Change in Control.       5. Employment Relationship. Employment with Zoom is for no specific period of time. Your     employment with Zoom will be “at will,” meaning that either you or Zoom may terminate your     employment at any time and for any reason, with or without Cause or advance notice. Any     contrary  representations  that  may  have  been  made  to  you  are  superseded  by  this  letter     agreement.  This  is  the  full  and  complete  agreement  between  you  and  Zoom  on  this  term.     Although your job duties, title, work location, compensation and benefits, as well as Zoom’s     personnel policies and procedures (which you are expected to abide by), may change from time     to time, the “at will” nature of your employment may only be changed in an express written     agreement signed by you and a duly authorized officer of Zoom (other than you).        6. Taxes. All forms of compensation referred to in this letter agreement are subject to reduction     to reflect applicable withholding and payroll taxes and other deductions. You agree that Zoom     does not have a duty to design its compensation policies in a manner that minimizes your tax     204155783 v4   

 

   liabilities, and you will not make any claim against Zoom or its Board of Directors related to     tax liabilities arising from your compensation.        7. Section 409A.  It is intended that all of the benefits and other payments payable under this     letter agreement satisfy, to the greatest extent possible, an exemption from the application of     Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the treasury     regulations thereunder and any state law of similar effect (collectively, “Section 409A”), and     this letter agreement will be construed to the greatest extent possible as consistent with those     provisions,  and  to  the  extent  no  so  exempt,  this  letter  agreement  (and  any  definitions     hereunder) will be construed in a manner that complies with Section 409A, and any ambiguities     herein shall be interpreted accordingly.  Specifically, the severance benefits under this letter     agreement are intended to satisfy the exemptions from application of Section 409A provided     under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9) and     each installment of severance benefits, if any, is a separate “payment” for purposes of Treasury     Regulations Section 1.409A-2(b)(2)(i).  However, if such exemptions are not available and     you are, upon Separation, a “specified employee” for purposes of Section 409A, then, solely     to the extent necessary to avoid adverse personal tax consequences under Section 409A, the     timing of the severance benefits payments shall be delayed until the earlier of (i) six (6) months     and one day after your Separation, or (ii) your death. Severance benefits shall not commence     until you have a Separation.  If severance benefits are not covered by one or more exemptions     from the application of Section 409A and the Release could become effective in the calendar     year following the calendar year in which your Separation occurs, the Release will not be     deemed effective, for purposes of payment of severance benefits, any earlier than the first day     of the second calendar year.  Except to the minimum extent that payments must be delayed     because you are a “specified employee” or until the effectiveness of the Release, all severance     amounts  will  be  paid  as  soon  as  practicable  in  accordance  with  this  letter  agreement  and     Zoom’s normal payroll practices.        8. Parachute  Payments.  If  any  payment  or  benefit  you  will  or  may  receive  from  Zoom  or     otherwise (a “Payment”) would (i) constitute a “parachute payment” within the meaning of     Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed     by Section 4999 of the Code (the “Excise Tax”), then any such Payment shall be equal to the     Reduced  Amount.   The  “Reduced  Amount”  shall  be  either  (x) the  largest  portion  of  the     Payment that would result in no portion of the Payment (after reduction) being subject to the     Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever     amount (i.e., the amount determined by clause (x) or by clause (y)), after taking into account     all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all     computed at the highest applicable marginal rate), results in your receipt, on an after-tax basis,     of the greater economic benefit notwithstanding that all or some portion of the Payment may     be subject to the Excise Tax.  If a reduction in a Payment is required pursuant to the preceding     sentence  and  the  Reduced  Amount  is  determined  pursuant  to  clause  (x)  of  the  preceding     sentence, the reduction shall occur in the manner (the “Reduction Method”) that results in the     greatest economic benefit for you.  If more than one method of reduction will result in the same     economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction     Method”).          204155783 v4   

 

   Notwithstanding any provisions in this Section above to the contrary, if the Reduction Method     or the Pro Rata Reduction Method would result in any portion of the Payment being subject to     taxes pursuant to Section 409A that would not otherwise be subject to taxes pursuant to Section     409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be,     shall be modified so as to avoid the imposition of taxes pursuant to Section 409A as follows:      (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest     economic  benefit  for  you  as  determined  on  an  after-tax  basis;  (B) as  a  second  priority,     Payments that are contingent on future events (e.g., being terminated without Cause), shall be     reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a     third priority, Payments that are “deferred compensation” within the meaning of Section 409A     shall be reduced (or eliminated) before Payments that are not deferred compensation within     the meaning of Section 409A.          Zoom shall appoint a nationally recognized accounting or law firm to make the determinations     required by this Section.  Zoom shall bear all expenses with respect to the determinations by     such accounting or law firm required to be made hereunder.  If you receive a Payment for     which  the  Reduced  Amount  was  determined  pursuant  to  clause  (x)  above  and  the  Internal     Revenue  Service  determines  thereafter  that  some  portion  of  the  Payment  is  subject  to  the     Excise Tax, you agree to promptly return to Zoom a sufficient amount of the Payment (after     reduction pursuant to clause (x) above) so that no portion of the remaining Payment is subject     to  the  Excise  Tax.   For  the  avoidance  of  doubt,  if  the  Reduced  Amount  was  determined     pursuant to clause (y) above, you shall have no obligation to return any portion of the Payment     pursuant to the preceding sentence.    9. Other Agreements and Conditions of Employment.  This offer of employment is contingent     upon your producing appropriate and satisfactory documentation establishing your identity and     right to work in the United States, and completing the INS form I-9, attesting that you have the     right to work in the United States. Such documentation must be produced within three business     days of hire. If you have questions about this requirement, which applies to U.S. citizens and     non-U.S. citizens alike, you may contact Human Resources.  Further, this offer of employment     is contingent upon satisfactory clearance of a background check and reference checks, and     your  signing  and  returning  with  this  letter  the  enclosed  “Employment,  Confidential     Information and Assignment of Creative Works Agreement” and “Arbitration Agreement”.       You agree not to bring to Zoom or use in the performance of your responsibilities at Zoom any     materials or documents of a former employer that are not generally available to the public,     unless you have obtained express written authorization from the former employer for their     possession and use.  You also agree to honor all obligations to former employers during your     employment with Zoom.       10. Interpretation, Amendment and Enforcement. This letter agreement, together with your     Employment, Confidential Information and Assignment of Creative Works Agreement and     Arbitration Agreement, constitutes the complete and exclusive statement of your employment     agreement with Zoom, and supersedes any prior agreements, representations or understandings     (whether written, oral or implied) between you and Zoom regarding these subject matters.     Modifications  or  amendments  to  this  letter  agreement,  other  than  those  changes  expressly     204155783 v4   

 

   reserved to Zoom’s discretion in this letter, must be made in a written agreement signed by     you and a duly authorized officer of Zoom (other than you).  If any provision of this offer letter     agreement is determined to be invalid or unenforceable, in whole or in part, this determination     shall not affect any other provision of this letter agreement and the provision in question shall     be modified so as to be rendered enforceable in a manner consistent with the intent of the     parties insofar as possible under applicable law.          This letter agreement shall be binding upon any entity or person who is a successor by  merger,  acquisition,  consolidation  or  otherwise  to  the  business  formerly  carried  on  by  Zoom  without regard to whether or not such entity or person actively assumes the obligations hereunder  and without regard to whether or not a Change in Control occurs.    If you wish to accept employment at Zoom under the terms described in this letter agreement,  please  sign  and  date  this  letter  agreement,  the  Employment,  Confidential  Information  and  Assignment of Creative Works Agreement and the Arbitration Agreement, and return them to me  on or before [intentionally left blank].  The offer of employment herein will expire if I do not  receive this signed letter by that date.  If you have any questions, please contact me.    Sincerely,   /S/ Eric Yuan                         Eric Yuan  President and Chief Executive Officer   Accepted and Agreed:      /S/ Ryan Azus_____________________  6/29/19________________________  Ryan Azus                           Date      204155783 v4ex_157680.htm

 

EXHIBIT 4.1

 

DESCRIPTION OF SECURITIES 

REGISTERED UNDER SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

Capital Stock

 

Amerityre Corporation (the “Company”) is authorized to issue (i) 75,000,000 shares of common stock, par value $0.001 per share (the “Common Stock”) and (ii) 5,000,000 shares of “blank check” preferred stock, par value $0.001 per share, with such rights, preferences and limitations as may be set by a resolution of the Board of Directors of the Company.

 

The Common Stock is registered pursuant to Section 12(g) of the Securities Exchange Act of 1934.

 

The holders of Common Stock are entitled to one vote per share on all matters submitted to a vote of shareholders, including the election of directors. There are no cumulative rights or preemptive rights. The directors of the Company are elected by a plurality of the votes cast by the shareholders. On all other matters submitted to the shareholders, the affirmative vote of the majority of the votes cast for or against a proposal shall be the act of the shareholders unless otherwise provided by the Chapter 78 of the Nevada Revised Statutes (“NRS”) or the bylaws of the Company.

 

In the event of liquidation or dissolution, the holders of Common Stock are entitled to share ratably in all assets remaining after payment of liabilities and the liquidation preferences of any outstanding shares of preferred stock. Holders of Common Stock have no preemptive rights and have no right to convert their Common Stock into any other securities and there are no redemption provisions applicable to our Common Stock.

 

The holders of Common Stock are entitled to any dividends that may be declared by the Board of Directors out of funds legally available for payment of dividends subject to the prior rights of holders of preferred stock and any contractual restrictions we have against the payment of dividends on Common Stock. We have not paid dividends on our Common Stock since inception and do not plan to pay dividends on our Common Stock in the foreseeable future.

 

Certain Provisions of Our Charter and Bylaws

 

Anti-takeover Provisions

 

In general, Section 78.438 of the NRS prohibits a Nevada corporation from engaging in a “combination” with an “interested stockholder” for a two-year period following the time that this shareholder becomes an interested shareholder, unless the combination is approved in a prescribed manner. A “combination” includes, among other things, a merger, asset or stock sale or other transaction resulting in a 5% voting interest in the interested stockholder. An “interested stockholder” is a person who, together with affiliates and associates, owns, or did own within two years prior to the determination of interested shareholder status, 10% or more of the corporation’s voting stock. Under Section 78.438, a combination between a corporation and an interested shareholder is prohibited unless the combination meets all the requirements of the articles of incorporation and it satisfies one of the following conditions:

 

	
			 

				
			●

				
			The combination or the transaction by which the person first became an interested stockholder is approved by the board of directors of the corporation before the person first became an interested stockholder; or

			
	
			 

				
			●

				
			The combination is approved by the board of directors of the corporation and, at or after that time, the combination is approved at an annual or special meeting of the stockholders of the corporation, and not by written consent, by the affirmative vote of the holders of stock representing at least 60 percent of the outstanding voting power of the resident domestic corporation not beneficially owned by the interested stockholder or the affiliates or associates of the interested stockholder.

			
	
			 

				 	 

 

 

 

 

The NRS permits a corporation to opt out of, or choose not to be governed by, its anti-takeover statute by expressly stating so in its original articles of incorporation (or subsequent amendment to its articles of incorporation or bylaws approved by its shareholders). The Articles of Incorporation of the Company, as amended, does not contain a provision expressly opting out of the application of Section 78.438 of the NRS; therefore the Company is subject to the anti-takeover statute.

 

Issuance of “Blank check” Preferred Stock

 

As stated above the Board of Directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of Common Stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes could, under some circumstances, have the effect of delaying, deferring or preventing a change in control of the Company.

 

2013 Series Preferred Stock

 

On December 13, 2013, the Board of Directors exercised its authority to issue 2,000,000 shares of preferred stock (the “2013 Series Shares”), which are now outstanding. In the event of liquidation of the Company, these 2013 Series Shares have priority over Common Stock shares. The 2013 Series Shares have voting rights only on matters directly affecting the rights and privileges of the 2013 Series Shares. The issued 2013 Series Shares will convert to the Company’s common stock at a ratio of 10 shares of common stock for each share of the 2013 Series Shares (1) at any time at the election of the holder; or (2) automatically on the date that is six years after the date of original issuance of the shares. The 2013 Series Shares contain a quarterly cash dividend rate of 1.25% of the original issuance price of $1.00 per share or $100,000 per year. Future dividend payments in the 2013 Series Shares have been suspended as of March 2016 so the Company can increase its working capital levels. 

 

Special Stockholder Meetings and Action by Written Consent

 

Under our bylaws, special meetings of the stockholders may be called at any time by the chairman of the board, the president, or by the board of directors, or in their absence or disability, by any vice president, and shall be immediately called by the president or, in his absence or disability, by a vice president or by the secretary on the written request of the holders of not less than one-tenth of all the shares entitled to vote at the meeting, such written request to state the purpose or purposes of the meeting and to be delivered to the president, each vice-president, or secretary.  

 

The information regarding the Common Stock contained herein does not constitute a complete legal description of the Common Stock and is qualified in all material respects by the provisions of the Company’s Articles of Incorporation and bylaws, as filed with the Securities and Exchange Commission.

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