Document:

Exhibit

 
Exhibit 10.1
 
 
 
September 28, 2017
 
Via Hand Delivery
 
Karan H. Powell
c/o American Public University System, Inc.
111 West Congress Street
Charles Town, West Virginia 25414
 
Dear Karan:
 
Thank you for your distinguished service to American Public University System, Inc. (“APUS”), a wholly owned subsidiary of American Public Education, Inc. (“ Parent ”). This retirement letter agreement between you, APUS and Parent (this “ Letter Agreement ”) sets forth the terms and conditions of your retirement as the President of APUS. This Letter Agreement amends and supplements the Amended and Restated Executive Employment Agreement by and among you, APUS and Parent, dated as of May 31, 2016 (the “ Employment Agreement ”). Please acknowledge your agreement and acceptance of the terms of this Letter Agreement by countersigning and returning a copy of this letter to me.
 
Any capitalized terms that are not otherwise defined herein shall have the meanings assigned thereto in the Employment Agreement.
 
In consideration of the mutual promises contained in this Letter Agreement, APUS, Parent and you agree, effective as of the date of this letter, as follows:
 
1.       Retirement from Service.
 
(a)       Effective October 15, 2017 (the “Retirement Date”), you hereby resign from your positions as the President of APUS and any other positions you may have with APUS, Parent, or their respective affiliates, and will promptly execute such documents and take such actions as may be necessary or reasonably requested by APUS or Parent to effectuate or memorialize your resignation from such positions. The parties agree that your resignation will be treated as a termination by APUS pursuant to Section 9(b)(iii) of the Employment Agreement, and that the Retirement Date shall constitute the Date of Termination for purposes of the Employment Agreement. You and APUS agree that, because your retirement is being treated as a termination pursuant to Section 9(b)(iii) of the Employment Agreement, you shall receive the benefits pursuant to Section 10(d) of the Employment Agreement, as they are modified pursuant to the terms of this Letter Agreement.
 
(b)       Effective as of the Retirement Date, your employment under the Employment Agreement will end and you will no longer be employed by APUS, Parent or any of their affiliates. From and after the Retirement Date and through June 30, 2018 (the “ Term ”) you agree to be available and willing to provide consulting services (the “ Consulting Services ”) to APUS and Parent from time to time as reasonably directed by the President (or Acting President) of APUS or the Chief Executive Officer of APEI, which services shall include transition services to support the transition to an Acting President and then to a new President, continuing to represent APUS in the higher education community as its advocate, continuing your President’s blog (as President Retired), and providing guidance as requested on accreditation related matters.
 
(c)        On the first regular payroll date of the Company following the Retirement, you shall be paid an amount equal to the sum of (i) your Base Salary through the Retirement Date to the extent not theretofore paid, and (ii) any accrued vacation pay, in each case, to the extent not theretofore paid (the “ Accrued Benefits ”). You acknowledge and agree that upon your acceptance and receipt of the Accrued Benefits APUS and Parent shall have satisfied all obligations pursuant to Section 10(d)(i) of the Employment Agreement.
 
 

September 28, 2017
Page 2
 
2.       Release. On or before the 21st day following the Retirement Date, you shall execute a Release of Claims in the form provided to you by the Company (the “ Release ”). Other than the Accrued Benefits, no payments that are scheduled to be paid prior to June 30, 2018 shall be made to you pursuant to this Letter Agreement and no benefits to which you are entitled pursuant to this Letter Agreement that are scheduled to be provided prior to June 30, 2018 shall accrue or otherwise take effect unless and until you have executed the Release and all revocation periods applicable thereto have expired on or before the 21st ]  day following the Retirement Date without the Release being revoked. On or before the 21st day following the expiration of the Term, you shall re-execute the Release. No payments that are scheduled to be paid on or after the expiration of the Term shall be made to you pursuant to this Letter Agreement and no benefits to which you are entitled pursuant to this Letter Agreement that are scheduled to be provided on or after the expiration of the Term shall accrue or otherwise take effect unless and until you have re-executed the Release and all revocation periods applicable thereto have expired on or before the 30th day following the expiration of the Term without the Release being revoked.
 
3.       Consulting Services and Termination Benefits.
 
(a)       In recognition of, and as consideration for, your availability and willingness to provide the Consulting Services you will provide to APUS and Parent during the Term and subject to your compliance with the terms of this Letter Agreement and the terms of the Employment Agreement, including those referred to in Section 4 below, during the Term (i) all of your outstanding restricted stock units and restricted stock awards shall continue to vest and be settled in accordance with the respective vesting schedules and performance conditions applicable thereto; at the expiration of the Term any outstanding restricted stock units and restricted stock awards that have not vested as a result of continued service through the Term or APUS’s retirement policy as set forth in an award agreement shall terminate for no consideration, (ii) you will be compensated during the Term a bi-weekly fee, pro-rated for any partial weeks of service during the Term, equal to $14,875.70, (iii) subject to your timely COBRA election, you will continue to participate in APUS’s medical, dental and vision benefit plans at the same level of coverage and on the same terms as in effect immediately prior to the Resignation Date, subject to such changes in the plans as apply to all employees of APUS generally (including any upward adjustment reflect premium increases), and (iv) you shall be eligible to receive a bonus pursuant to the bonus plans that have been communicated to you for calendar year 2017, subject to achievement of the performance metrics applicable to you for 2017, provided, however, that, the portion of such bonus attributable to metric four shall be deemed to have been satisfied at the target level, which bonus, if earned, shall be paid at the same time as bonuses are paid to employees of APUS generally, but in no event later than March 15, 2018. The Parties agree that the bonus payment in respect of calendar year 2017 set forth in this Section 3(a) represents the entirety of the bonus for calendar year 2017 to which you are entitled pursuant to the Employment Agreement. In addition, subject to your continued provision of Consulting Services during the Term, you shall be reimbursed for all reasonable, documented expenses in accordance with APUS policies and procedures for (i) conference fees and travel to approved conferences and speaking events through December 31, 2017, and (ii) conference fees and travel to approved conventions/conferences through June 30, 2018.
 
(b)       The parties agree that, in consideration of your years of service to APUS and Parent ,your promises in this Letter Agreement, your execution of the Release and subject to your compliance with the terms of this Letter Agreement and the terms of the Employment Agreement, following the expiration of the Term (i) at each regularly scheduled bi-weekly payroll you will be compensated a fee equal to $14,875.70 until December 31, 2019, (ii) subject to your timely COBRA election, you will continue to participate in APUS’s medical, dental and vision benefit plans until March 31, 2019 at the same level of coverage and on the same terms as in effect immediately prior to the Resignation Date (provided that if you become reemployed with another employer and are eligible to receive medical or other welfare benefits under another employer provided plan, APUS will no longer make any premium payment on your behalf), (iii) for the period from April 1, 2019 through December 31, 2019, you shall be paid a supplemental monthly payment equal to the premium amount paid by APUS on a monthly basis to allow you to continue to participate in APUS’s benefit plans under Section 3(b)(ii) above (provided that if you become reemployed with another employer and are eligible to receive medical or other welfare benefits under another employer provided plan, you will cease to receive such supplemental payment), and (iv) you shall be eligible to receive a bonus for calendar year 2018 of $190,000 if (A) net income for 2018 has increased from the calendar year 2017 level and if the performance targets for the replacement President of APUS are satisfied for calendar year 2018 (with the bonus subject to a pro rata downward adjustment to reflect the relative level of achievement), (B) the Higher Learning Commission both approves the University’s Change in Structure Application without requiring any material modification to the shared services model proposed in the initial application by December 31, 2018 and has completed by December 31, 2018 the HLC Standard Pathway mid-cycle review and all subsequent reporting and has not taken any action to limit or modify APUS’s institutional accreditation, or otherwise changed APUS status from being subject to the HLC Standard Pathway Schedules and requirements, or (C) there is a change of control of APUS or Parent. Any bonus payable pursuant to clause (iv) of the prior sentence, if earned, shall be paid at the same time as bonuses are paid to employees of APUS generally, but in no event later than March 15, 2019. You acknowledge and agree that upon your acceptance and receipt of the amounts in this Section 3(b) APUS and Parent shall have satisfied its obligations pursuant to Sections 10(d)(ii), (iii), and (iv) of the Employment Agreement.
 
 

September 28, 2017
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(c)       You acknowledge and agree that you have no further right to receive any compensation, payments or benefits from APUS, Parent or their affiliates, other than as set forth in the Employment Agreement, as amended by this Letter Agreement.
 
4.       Restrictive Covenants. You acknowledge and agree that any and all restrictive covenants to which you are subject, including, but not limited to, those described in Section 7 (Confidential Information) and Section 8 (Non-Competition) of the Employment Agreement will continue in full force and effect in accordance with the terms and conditions thereof. Notwithstanding anything to the contrary in Section 8 of the Employment Agreement, the Restricted Period and the accompanying restrictions on competing activity will run through October 31, 2018, and the non-solicitation period will apply until June 30, 2019. You also acknowledge and agree that any and all terms and conditions of the Employment Agreement that survive your separation from APUS and Parent to which you are subject will continue in full force and effect in accordance with the terms and conditions thereof.
 
5.       Taxes. APUS may withhold from any amounts payable under this Letter Agreement all federal, state, city, foreign or other taxes as APUS is required to withhold pursuant to any applicable law, regulation or ruling. Notwithstanding any other provision of this Letter Agreement, APUS shall not be obligated to guarantee any particular tax result for you with respect to any payment provided hereunder, and you shall be responsible for any taxes imposed on you with respect to any such payment.
 
6.       Section 409A. This Letter Agreement and the payments to be made hereunder are intended to comply with, or be exempt from, Section 409A of the Internal Revenue Code of 1986, as amended and the regulations promulgated thereunder (“ Section 409A ”), and this Letter Agreement will be interpreted, and all tax filings with the Internal Revenue Service relating to the payments will be made, in a manner consistent with that intent. Your retirement as the President of APUS is intended to constitute a “separation from service” for purposes of Section 409A. In furtherance of the preceding sentence, you, APUS and Parent anticipate and agree that the level of consulting services that you shall perform during the Term shall not exceed the maximum level that is presumed to result in a “separation from service” in accordance with Treasury Regulation Section1.409A-1(h)(1)(ii).
 
7.       Consultation with Attorney; Voluntary Agreement. You acknowledge that (a) APUS and APEI have advised you to consult with an attorney of your own choosing prior to executing this Letter Agreement, (b) you have carefully read and fully understand all of the provisions of this Letter Agreement, and (c) you are entering into this Letter Agreement knowingly, freely and voluntarily in exchange for good and valuable consideration.
 
8.       Governing Law. Letter Agreement shall be governed by and construed in accordance with the laws of the State of West Virginia (but not including the choice of law rules thereof).
 
9.       Entire Agreement. This Letter Agreement, taken together with the Release and the Employment Agreement, as modified by this Letter Agreement, constitute and contain the entire agreement and understanding concerning your employment, cessation of employment and the other subject matters addressed herein between the parties, and supersedes and replaces all prior negotiations and all agreements proposed or otherwise, whether written or oral, concerning the subject matters hereof. Except as expressly amended by this Letter Agreement, the terms of the Employment Agreement remain in full force and effect.
 
10.       Amendments. This Letter Agreement shall not be amended, altered or modified except by an instrument in writing duly executed by the parties hereto.
 
11.       Counterparts. This Letter Agreement may be executed in two or more counterparts, each of which shall be an original, and all of which shall be deemed to constitute one and the same instrument.
 
 

September 28, 2017
Page 4
 
If the foregoing accurately reflects our agreement, please sign and return to us the enclosed duplicate copy of this Letter Agreement.
 
 
	
			
	 
	AMERICAN PUBLIC UNIVERSITY SYSTEM, INC.

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ Richard W. Sunderland, Jr.

	 
	Name:
	Richard W. Sunderland, Jr.

	 
	Title:
	CFO

	 
	 
	 

	 
	 
	 

	 
	AMERICAN PUBLIC EDUCATION, INC.

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ Wallace E. Boston

	 
	Name:
	Wallace E. Boston

	 
	Title:
	CEO

	 
	 
	 

	Accepted and Agreed to:
	 
	 

	 
	 
	 

	 
	 
	 

	/s/ Karan H. Powell
	 
	 

	Karan H. Powell, President of APUS (Retired)EX-10.1

 Exhibit 10.1 

SUNESIS PHARMACEUTICALS, INC. 

CONTROLLED EQUITY OFFERINGSM 

AMENDMENT NO. 3 TO 

SALES AGREEMENT 

November 7, 2017 
 Cantor
Fitzgerald & Co. 
 499 Park Avenue 
 New York, NY
10022 
 Ladies and Gentlemen: 
 Reference is made to the
Sales Agreement, dated August 11, 2011, as amended on April 10, 2013, and March 12, 2015, including the Schedules thereto (the “Sales Agreement”), between Cantor Fitzgerald & Co.
(“CF&Co”) and Sunesis Pharmaceuticals, Inc., a Delaware corporation (the “Company”), pursuant to which the Company agreed to sell through CF&Co, as sales agent, shares of common stock, par value $0.0001 per
share, of the Company. All capitalized terms used in this Amendment No. 3 to Sales Agreement between CF&Co and the Company (this “Amendment”) and not otherwise defined herein shall have the respective meanings assigned to
such terms in the Sales Agreement. CF&Co and the Company agree as follows: 
 A. Amendments to Sales Agreement. The Sales Agreement is amended as
follows: 
 1. The first sentence of Section 1 of the Sales Agreement is hereby deleted and replaced with the following: 

“The Company agrees that, from time to time after November 7, 2017 and during the term of this Agreement, on the terms and subject
to the conditions set forth herein, it may issue and sell through CF&Co, acting as agent and/or principal, shares (the “Placement Shares”) of common stock of the Company, par value $0.0001 per share (the
“Common Stock”), having an aggregate offering price of up to $45,000,000 and such amount of Placement Shares shall be available for offer and sale in addition to any offers and sales of Placement Shares previously made
pursuant to the Prospectus Supplement filed by the Company on August 11, 2011, the Prospectus Supplement filed by the Company on April 10, 2013, the Prospectus in the registration statement on Form S-3 (File No. 333-187854) declared
effective on April 30, 2013, the Prospectus Supplement filed by the Company on March 12, 2015, and the Prospectus Supplement filed by the Company on July 29, 2016, pursuant to this Agreement, subject to any limitations set forth in
Section 6(e) hereof (“Maximum Amount”).” 
 2. The second paragraph of Section 1 of the Sales Agreement is hereby
deleted and replaced with the following: 
 “The Company has filed, or will file, in accordance with the provisions of the Securities
Act of 1933, as amended, and the rules and regulations thereunder (collectively, the “Securities Act”), with the Commission a registration statement on Form S-3, including a base prospectus, relating to certain securities,
and a prospectus relating to the Placement Shares, to be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions of the Securities Exchange Act
of 1934, as amended, and the rules and regulations thereunder (collectively, the “Exchange Act”). The Company may file one or more additional registration statements from time to time that will contain a base prospectus,
prospectus and/or prospectus supplement with respect to the Placement Shares. The Company will furnish to CF&Co, for use by CF&Co, copies of the prospectuses included as part of such registration statement (as well as any comparable
successor registration statement filed by the Company with respect to the sale of Placement Shares), as may be supplemented by any prospectus supplements relating to the Placement Shares (such prospectuses and any related prospectus supplements,
collectively, the “Prospectus Supplement”). Except 

 
where the context otherwise requires, such registration statements, as amended when each becomes effective, including all documents filed as part thereof or incorporated by reference therein, and
including any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act or deemed to be a part of such registration statements pursuant to Rule 430B or 462(b) of
the Securities Act, as well as any comparable successor registration statement filed by the Company for the sale of shares of its Common Stock, including the Placement Shares, collectively are herein called the “Registration
Statements.” The Prospectus Supplement, including all documents incorporated therein by reference, included in the Registration Statements, in the form in which such Prospectus Supplement has most recently been filed by the Company with the
Commission pursuant to Rule 424(b) under the Securities Act, together with the then issued Issuer Free Writing Prospectus(es), is herein called the “Prospectus.” Any reference herein to the Registration Statements, the
Prospectus or any amendment or supplement thereto shall be deemed to refer to and include the documents incorporated by reference therein, and any reference herein to the terms “amend,” “amendment” or “supplement” with
respect to the Registration Statements or the Prospectus shall be deemed to refer to and include the filing after the execution hereof of any document with the Commission deemed to be incorporated by reference therein (the “Incorporated
Documents”). For purposes of this Agreement, all references to the Registration Statements, the Prospectus or to any amendment or supplement thereto shall be deemed to include any copy filed with the Commission pursuant to either the
Electronic Data Gathering Analysis and Retrieval System or Interactive Data Electronic Applications (collectively “IDEA”).” 

3. Section 5(d) of the Sales Agreement is hereby deleted and replaced with the following: 

“(d) Financial Information. The consolidated financial statements of the Company included or incorporated by
reference in the Registration Statement and the Prospectus, together with the related notes and schedules, present fairly, in all material respects, the consolidated financial position of the Company and the Subsidiaries (as defined below) as of the
dates indicated and the consolidated results of operations, cash flows and changes in stockholders’ equity of the Company for the periods specified and have been prepared in compliance with the requirements of the Securities Act and Exchange
Act and in conformity with generally accepted accounting principals applied on a consistent basis during the periods involved; the other financial and statistical data with respect to the Company and the Subsidiaries (as defined below) contained or
incorporated by reference in the Registration Statement and the Prospectus are accurately and fairly presented and prepared on a basis consistent with the financial statements and books and records of the Company; there are no financial statements
(historical or pro forma) that are required to be included or incorporated by reference in the Registration Statement or the Prospectus that are not included or incorporated by reference as required; the Company and the Subsidiaries (as defined
below) do not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not described in the Registration Statement (excluding the exhibits thereto), and the Prospectus; and all disclosures
contained or incorporated by reference in the Registration Statement and the Prospectus regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission) comply with Regulation G of the
Exchange Act and Item 10(e) of Regulation S-K under the Securities Act, to the extent applicable.” 
 4. A new Section 5(rr) is added to the
Sales Agreement, which reads as follows: 
 “(rr) Sanctions. (i) The Company represents that, neither the
Company nor any of its Subsidiaries (collectively, the “Entity”) or any director, officer, employee, agent, affiliate or representative of the Entity, is a government, individual, or entity (in this paragraph (rr),
“Person”) that is, or is owned or controlled by a Person that is: 
 (A) the subject of any sanctions
administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”), the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions
authorities, including, without limitation, designation on OFAC’s Specially Designated Nationals and Blocked Persons List or OFAC’s Foreign Sanctions Evaders List (as amended, collectively, “Sanctions”), nor 

 (B) located, organized or resident in a country or territory that is the
subject of Sanctions that broadly prohibit dealings with that country or territory (including, without limitation, Cuba, Iran, North Korea, Sudan, Syria and the Crimea Region of the Ukraine). 

(ii) The Entity represents and covenants that it will not, directly or indirectly, use the proceeds of the offering, or
lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person: 

(A) to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the
time of such funding or facilitation, is the subject of Sanctions; or 
 (B) in any other manner that will result in a
violation of Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor or otherwise). 

(iii) The Entity represents and covenants that, except as detailed in the Registration Statement and the Prospectus, for
the past 5 years, it has not engaged in, is not now engaging in, and will not engage in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions.

 5. Schedule 1 is amended by replacing the words “August 11, 2011, as amended on April 10, 2013 and March 12, 2015” with the words
“August 11, 2011, as amended on April 10, 2013, March 12, 2015, and November 7, 2017.” 
 6. The Form of Representation Date
Certificate attached as Exhibit 7(m) is amended by replacing the words “August 11, 2011, as amended on April 10, 2013 and March 12, 2015” in the first sentence with the words “August 11, 2011, as amended on April 10,
2013, March 12, 2015, and November 7, 2017.” 
 B. No Other Amendments. Except as set forth in Part A above, all the terms and
provisions of the Sales Agreement shall continue in full force and effect. 
 C. Counterparts. This Amendment may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed Amendment by one party to the other may be made by facsimile or email transmission. 

D. Governing Law. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of New York without regard to
the principles of conflicts of laws. 
 [Remainder of page intentionally left blank.] 

 If the foregoing correctly sets forth the understanding between us, please so indicate in the space provided
below for that purpose. 
  

					
	Very truly yours,
	
	SUNESIS PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Daniel N. Swisher, Jr.

		 	Name:	 	Daniel N. Swisher, Jr.
		 	Title:	 	Chief Executive Officer, President, and Interim Chief Financial Officer
	
	ACCEPTED as of the date first above written:
	
	CANTOR FITZGERALD & CO.
		
	By:	 	 /s/ Jeffrey Lumby

		 	Name:	 	Jeffrey Lumby
		 	Title:	 	Senior Managing Director

  
 SIGNATURE
PAGE 
 SUNESIS PHARMACEUTICALS, INC. – AMENDMENT
NO. 3 TO SALES AGREEMENT

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