Document:

ex_159450.htm

Exhibit 10.1

 

AWARD PURCHASE, CANCELLATION AND RELEASE AGREEMENT

 

This AWARD PURCHASE CANCELLATION AND RELEASE AGREEMENT (this “Agreement”) is entered into by and between Tapinator, Inc., a Delaware corporation (the “Company”), and _______________ (the “Participant”), effective as of September 30, 2019 (the “Effective Date”).

 

WHEREAS, the Company currently sponsors and maintains the Tapinator, Inc. 2015 Equity Incentive Plan (the “Plan”);

 

WHEREAS, pursuant to the terms of a Restricted Stock Unit Award Agreement by and between the Participant and the Company (the “RSU Agreement”), the Company granted the Participant an award under the Plan of __________________ restricted stock units (the “RSUs”);

 

WHEREAS, as of the Effective Date, (i) 1/36th of the RSUs vested in each of August and September (the “Vested RSUs”), but as of the Effective Date, the vested RSUs have not yet been converted into shares of common stock of the Company, par value $0.001 per share (“Common Stock”), and (ii) the remaining 34/36th of RSUs granted to the Participant remain outstanding and unvested (the “Unvested RSUs”); and

 

WHEREAS, in exchange for the consideration described below, the Company and the Participant mutually desire to (i) have the Company repurchase the Common Stock that was to be delivered with respect to the Vested RSUs; (ii) cancel the Participant’s interests as to all of the Unvested RSUs (collectively, the “Forfeited RSUs”), effective as of the Effective Date, so that on and after the Effective Date, the Participant’s interests as to Vested RSUs, the Forfeited RSUs and the RSU Agreement shall be cancelled, terminated, and of no further force or effect.

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the sufficiency of which are hereby acknowledged, the parties to this Agreement agree as follows:

 

CANCELLATION OF AWARD

 

1.1     Purchase of Vested RSUs. In exchange for the consideration described in Section 1.3 below, the Participant agrees to sell his Vested RSUs to the Company, and the Company agrees to purchase such Vested RSUs, and the Participant hereby agrees that following such purchase his interests in the Vested RSUs shall be cancelled, terminated, and of no further force or effect, effective as of the Effective Date, and that neither the Company nor the Participant shall have any further rights or obligations with respect to the Vested RSUs. The Participant further acknowledges and understands that the Company shall deduct the income and employment tax withholding due with respect to the Vested RSUs from the consideration described in Section 1.3.

 

1.2     Cancellation of RSUs. In exchange for the consideration described in Section 1.3 below, the Participant hereby agrees that his interests in the Forfeited RSUs and the RSU Agreement (including any amendments thereto) shall be cancelled, terminated, and of no further force or effect, effective as of the Effective Date, and that neither the Company nor the Participant shall have any further rights or obligations with respect to the Forfeited RSUs or otherwise under the RSU Agreement or with respect to which any shares of Common Stock that could have been acquired upon vesting and settlement of the Forfeited RSUs.

 

1.3     Consideration. In exchange for the Participant’s agreement to sell the Vested RSUs, and cancel the Forfeited RSUs, the RSU Agreement (including any amendments thereto), and any other rights, obligations, and liabilities of the Company granting the Participant the opportunity to acquire shares of Common Stock or other ownership interests of the Company in connection with the Vested RSUs and Forfeited RSUs, and the release of claims set forth in Section 1.3 below, the Company agrees to:

 

(a)     grant the Participant, effective as of the Effective Date, an award of stock options permitting the Participant to acquire up to _______________________ shares of Common Stock, with an exercise price that is equal to the Common Stock’s fair market value on the date of grant, subject to the terms and conditions set forth in the Plan and a Stock Option Grant and Agreement, substantially in the same form as attached hereto as Exhibit A (the “Option Agreement”); and

 

(b)     pay the Participant an amount equal to $________________________ (the “Bonus”), less all applicable tax deductions and withholdings relating to such Bonus and the Vested RSUs, in a lump-sum cash payment on the Company’s next regularly scheduled payroll date next following the Effective Date.

 

 

 

 

1.4      Release. Effective as of the Effective Date, the Participant, for the Participant and the Participant’s successors and assigns forever, does hereby unconditionally and irrevocably compromise, settle, remise, acquit, and fully and forever release and discharge the Company and its respective successors, assigns, parents, divisions, subsidiaries, and affiliates, and its present and former officers, directors, employees, and agents (collectively, the “Released Parties”) from any and all claims, counterclaims, set-offs, debts, demands, choses in action, obligations, remedies, suits, damages, and liabilities in connection with any rights (a) to acquire securities of the Company pursuant to the RSUs or the RSU Agreement (including any amendments thereto) and (b) to receive payment of all or any portion of the Bonus (collectively, the “Releaser’s Claims”), whether now known or unknown, or suspected or claimed, whether arising under common law, in equity, or under statute, which the Participant or the Participant’s successors or assigns ever had, now have, or in the future may claim to have against the Released Parties and which may have arisen at any time on or prior to the date hereof, provided that this Section 1.4 shall not apply to any of the obligations or liabilities of the Released Parties arising under or in connection with this Agreement. The Participant covenants and agrees never to commence, voluntarily aid in any way, prosecute, or cause to be commenced or prosecuted against the Released Parties any action or other proceeding based on any of the released Releaser’s Claims which may have arisen at any time on or prior to the date hereof.

 

1.5     Further Assurances. Each party to this Agreement agrees that it will perform all such further acts and execute and deliver all such further documents as may be reasonably required in connection with the consummation of the transactions contemplated hereby in accordance with the terms of this Agreement.

 

1.6     Representations and Warranties. The Participant hereby represents and warrants to the Company that: (a) there are no restrictions on the cancellation of the Forfeited RSUs or the RSU Agreement, (b) the Participant has full power and authority to enter into and perform this Agreement and to carry out the transactions contemplated hereby, and (c) this Agreement constitutes the legal, valid, and binding obligation of the Participant, enforceable against the Participant in accordance with its terms. The Participant has read and understood this Agreement and is entering into this Agreement voluntarily. The Participant agrees that this Agreement provides good and valuable consideration for the Participant’s agreements contained herein.

 

MISCELLANEOUS

 

2.1     Headings. The headings that are used in this Agreement are used for reference and convenience purposes only and do not constitute substantive matters to be considered in construing the terms and provisions of this Agreement.

 

2.2     Gender and Number. Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise.

 

2.3     Parties Bound. The terms, provisions, representations, warranties, covenants, and agreements that are contained in this Agreement shall apply to, be binding upon, and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, and permitted successors and assigns.

 

2.4     Execution. This Agreement may be executed in two or more counterparts (including by facsimile or portable document (“.pdf”) counterparts), all of which taken together shall constitute one instrument. The exchange of copies of this Agreement and of signature pages by facsimile or .pdf transmission shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original agreement for all purposes. Signatures of the parties transmitted by facsimile or .pdf shall be deemed to be their original signatures for any purpose whatsoever.

 

2.5     Entire Agreement. This Agreement (together with the Plan and the Option Agreement) contains the entire understanding of the parties to this Agreement with respect to the subject matter contained in this Agreement. This Agreement supersedes all prior agreements and understandings among the parties with respect to such subject matter, including, without limitation, the RSU Agreement (including any amendments thereto).

 

2.6     Law Governing; Venue. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the laws of the State of Delaware (excluding any conflict of laws rule or principle of the laws of the State of Delaware that might refer the governance, construction, or interpretation of this Agreement to the laws of another state).

 

2.7     Notice. Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. Notice shall be addressed to the Company at its principal executive office and to the Participant at the address he most recently provided to the Company.

 

 

 

[Remainder of Page Intentionally Left Blank;

Signature Page Follows.]

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and the Participant, to evidence his consent and approval of all the terms hereof, has duly executed this Agreement as of the date above.

 

	 	Tapinator, inc.
	 	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	 	 
	 	THE PARTICIPANT
	 	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Address:	 
	 	 	 

 

Signature Page to

Award Cancellation and Release Agreement

 

 

 

EXHIBIT A

 

Stock Option Grant and Agreement

 

 

 

Exhibit A to 

Award Cancellation and Release AgreementExhibit 10.1

 

 

September 30, 2019

 

Mr. Timothy P. Noyes

5 Brigham Road

Lexington, MA 02420

 

Dear Tim:

 

The purpose of this Separation
Agreement and Release Agreement (the “Agreement”) is to set forth the terms of your separation of employment from Proteon
Therapeutics, Inc. (the “Company”). The Severance Payment being offered in this Agreement and described below are contingent
on your assent to and compliance with the provisions of this Agreement, including your signing of this Agreement.

 

1.       Separation
of Employment. Your employment with the Company shall terminate on September 30, 2019 (the “Separation Date”).
You acknowledge that from and after the Separation Date, you shall have no authority to, and shall not represent yourself as an
employee or agent of the Company. Your salary and benefits will cease as of that date and any entitlement you have or might have
under any Company-provided benefit program will also end except as required by federal or state law.

 

2.       Severance
Payment. If you sign and comply with the terms of this Agreement, and this Agreement shall have become effective and irrevocable
in accordance with the provisions of Section 10 hereof, the Company will provide you with the following consideration (the “Severance
Payments”):

 

A.       A
Separation Payment equal in the gross amount of $550,531, less appropriate tax and other applicable deductions, payable on the
first regular payroll date following the Effective Date (as defined in Section 10) of this Agreement.

 

B.        If
you are a participant in the Company’s group Medical, Vision and/or Dental insurance plans (the “Company’s Plans”)
at the time of your termination, your coverage will end on your Separation Date.

 

If you were an active participant
in the Company’s Plans at time of termination, you will be eligible to continue all coverage through the Consolidated Omnibus
Budget Reconciliation Act (“COBRA”) for up to 18 months.

 

You will receive a COBRA
Qualifying Event Notice from the Company’s COBRA administrator, within 14 days of your Separation Date. You will have
60 days to make your election.

 

If you are participating in
the Company’s group health insurance plans on your Separation Date, and you timely elect and remain eligible for continued
coverage under COBRA, or, if applicable, state insurance laws, the Company shall pay the portions of your COBRA premiums that the
Company was paying prior to your Separation Date for a period of twelve (12) months; provided that you continue to pay the employee
portion of such premium during such twelve (12) month period.

 

    

    

    

Following the above twelve
(12) month period, in the event that you do not become employed by a third party during the COBRA eligibility period or are not
otherwise covered under alternative employer-sponsored medical, vision and/or dental insurance plans, you will have the right,
at your own expense, to pay the full cost of the coverage plus the statutory administrative fee, which will not be subsidized by
the Company, to continue your participation in the Company’s Plans to the extent permitted by COBRA.  The “qualifying
event” under COBRA shall be deemed to occur on the Separation Date.

 

C.        The
Company agrees not to contest your application for unemployment benefits.

 

3.       Compensation
and Benefits Acknowledgements. You acknowledge and agree that the Company is not obligated to continue your employment, and
that the Severance Payments are being offered as part of the separation of your employment and are in consideration of your agreements,
including the release of claims, included in this Agreement. Finally, you acknowledge that except for the specific financial consideration
set forth in this Agreement, and any regular salary and accrued but unused vacation earned as of the Separation Date, you are not
now and shall not in the future be entitled to any other compensation from the Company including, without limitation, other wages,
commissions, bonuses, stock options, equity, vacation pay, holiday pay, paid time off or any other form of compensation or benefit.

 

4.       Return
of Company Property. By no later than the Separation Date, you agree to promptly return to the Company all Company documents
(and any copies) and property (including all electronically stored information) regardless of where such documents, information
or property is maintained. You acknowledge and agree that you shall not maintain any copies or duplicates of such documents or
information. You further acknowledge that if you were to use or disclose any of the information reflected in such items, that this
might cause immediate, substantial and irreparable harm to the Company.

 

5.        Confidentiality.
You expressly acknowledge and agree that you will keep all confidential information and trade secrets of the Company confidential;
and that you will abide by any and all common law and/or statutory obligations relating to protection and non-disclosure of the
Company’s trade secrets and/or confidential and proprietary documents and information. All other information relating in
any way to the negotiation of this Agreement, including the terms and amount of financial consideration provided for in this Agreement,
shall be held confidential by you and shall not be publicized or disclosed to any person (other than an immediate family member,
legal counsel, or financial advisor, provided that any such individual to whom disclosure is made agrees to be bound by these confidentiality
obligations), business entity, or as otherwise mandated by state or federal law.

 

6.       Other
Agreements. Subject to your adherence to the other terms and conditions of this Agreement, the Company agrees to waive enforcement
and discharge you from your obligations under any previous agreements governing post-employment non-competition and non-solicitation.

 

7.        Non-Disparagement.
You agree that you will not make any statements that are professionally or personally disparaging about, or adverse to, the interests
of the Company (including its officers, directors, employees and consultants) including, but not limited to, any statements that
disparage any person, product, service, finances, financial condition, capability or any other aspect of the business of the Company,
and that you will not engage in any conduct which could reasonably be expected to harm professionally or personally the reputation
of the Company (including its officers, directors, employees and consultants).

 

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8.       Release
of Claims. You hereby agree and acknowledge that by signing this Agreement and accepting the Severance Payments set forth herein,
and other good and valuable consideration provided for in this Agreement, you are waiving your right to assert any form of legal
claim against the Company and each of its past and current parents, subsidiaries, affiliates, and each of its and their respective
past and current directors, officers, members, trustees, employees, representatives, agents, attorneys, employee benefit plans
and such plans’ administrators, fiduciaries, trustees, recordkeepers and service providers, and each of its and their respective
successors and assigns, each and all of them in their personal and representative capacities (collectively the “Company Releasees”),
and you represent that you have not asserted or filed, any form of legal claim against any of the Company Releasees, of any kind
related to your employment relationship with any of the Company Releasees (or the termination thereof) through and including the
Separation Date. Your waiver and release herein is intended to bar any form of legal claim, charge, complaint or any other form
of action (jointly referred to as "Claims") against any of the Company Releasees seeking any form of relief including,
without limitation, equitable relief (whether declaratory, injunctive or otherwise), the recovery of any damages or any other form
of monetary recovery whatsoever (including, without limitation, back pay, front pay, compensatory damages, emotional distress damages,
punitive damages, attorneys’ fees and any other costs) against any of the Company Releasees related to your employment relationship
with any of the Company Releasees (or the termination thereof), up through and including the Separation Date.

 

Without limiting the generality
of the foregoing you specifically waive and release each of the Company Releasees from any Claim arising from or related to your
employment relationship with any of the Company Releasees or the termination thereof including, without limitation:

 

(i) Claims under any state (including,
without limitation, Massachusetts, or any other state where you performed work for any of the Company Releasees) or federal discrimination,
fair employment practices or other employment related statute, regulation or executive order (as they may have been amended through
the date on which you sign this Agreement). This release is intended and shall include any Claims under the Massachusetts Fair
Employment Act (also known as Massachusetts General Laws Chapter 151B).

 

(ii) Claims under any other
state (including, without limitation, Massachusetts or any other state where you performed work for any of the Company Releasees)
or federal employment related statute, regulation or executive order (as they may have been amended through the date on which you
sign this Agreement) relating to wages, hours or any other terms and conditions of employment.

 

(iii) Claims under any state
(including, without limitation, Massachusetts or any other state where you performed work for any of the Company Releasees) or
federal common law theory; and

 

(iv) Any other Claim arising
under other state or federal law.

 

Notwithstanding the foregoing,
this Section 8 shall not release any of the Company Releasees from (i) any obligation expressly set forth in this Agreement; or
(ii) as otherwise may not be released under laws such as covering unemployment compensation benefits, workers’ compensation
benefits, or vested benefits under a retirement plan governed by ERISA.

 

Nothing in this Agreement shall
bar or prohibit you from contacting, seeking assistance from or participating in any proceeding before any federal or state administrative
agency to the extent permitted by applicable federal, state and/or local law. This Agreement is not intended to, and does not govern,
any claims that cannot be released by private agreement.

 

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9.       Reports
to Government Entities. Nothing in this Agreement restricts or prohibits you from initiating communications directly with,
responding to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations
of law or regulation to, or from filing a claim or assisting with an investigation directly with a self-regulatory authority or
a government agency or entity, including without limitation, the EEOC, the Department of Labor, the National Labor Relations Board,
the U.S. Department of Justice, the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Occupational
Safety and Health Administration, the U.S. Congress, any other federal, state, or local government agency or commission, and any
agency Inspector General (collectively, the “Regulators”), or from making other disclosures that are protected under
the whistleblower provisions of federal, state, or local law or regulation. You do not need the prior authorization of the Company
to engage in conduct protected by this Section, and you do not need to notify the Company that you have engaged in such conduct.
This Agreement does not limit your right to receive an award from any Regulator that provides awards for providing information
relating to a potential violation of the law. However, to the maximum extent permitted by law, you are waiving your right to receive
any individual monetary relief from the Company resulting from the released claims, regardless of whether you or another party
has filed them, and in the event you obtain such monetary relief, the Company will be entitled to an offset for the payments made
pursuant to this Agreement. You recognize and agree that, in connection with any such activity outlined above, you must inform
the Regulators, your attorney, a court or a government official that the information you are providing is confidential. Despite
the foregoing, you are not permitted to reveal to any third-party, including any governmental, law enforcement, or regulatory authority,
information you came to learn during the course of your employment with the Company that is protected from disclosure by any applicable
privilege, including but not limited to the attorney-client privilege and/or attorney work product doctrine. The Company does not
waive any applicable privileges or the right to continue to protect its privileged attorney-client information, attorney work product,
and other privileged information.

 

Please take notice that federal
law provides criminal and civil immunity to federal and state claims for trade secret misappropriation to individuals who disclose
a trade secret to their attorney, a court, or a government official in certain, confidential circumstances that are set forth at
18 U.S.C. §§ 1833(b)(1) and 1833(b)(2), related to the reporting or investigation of a suspected violation of the law,
or in connection with a lawsuit for retaliation for reporting a suspected violation of the law.

 

10.       Effective
Date. You have twenty-one (21) days, until October 21, 2019, to consider and accept the terms of this Agreement (although you
may choose to voluntarily execute this Agreement earlier) by signing below and returning it to Proteon Therapeutics, c/o George
Eldridge, SVP and CFO, 200 West Street, Waltham, MA 02451. Thereafter, you have seven (7) days following the execution of this
Agreement by the parties to revoke the Agreement. This Agreement shall not be effective until the date upon which the revocation
period has expired, which shall be the eighth day after you sign this Agreement (the “Effective Date”). To be effective,
the notice of revocation must be hand delivered or postmarked within the seven (7) day period and sent by certified mail, return
receipt requested, to the above-address.

 

11.       Termination
of Options. You hereby acknowledge and agree that, as of the date of this Agreement, you are the holder of stock options exercisable
for shares of the Company’s common stock, which stock options were previously granted by the Company and remain outstanding
on the date of this Agreement (collectively, the “Outstanding Stock Options”). As additional consideration for the
obligations that the Company is agreeing to undertake pursuant to this Agreement, you hereby agree to cancel and terminate any
and all Outstanding Stock Options, effectively immediately upon signing this Agreement. The provisions of this Section 11 shall
apply notwithstanding anything express or implied to the contrary under the Plan or in any stock option award agreement between
you and the Company. From and after the date of this Agreement, the Outstanding Stock Options shall be terminated, cancelled and
cease to be outstanding and you shall not have any further right, title or interest in or to the Outstanding Stock Options or any
of the shares of the Company’s common stock underlying or subject to the Outstanding Stock Options.

 

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12.       Entire
Agreement/Choice of Law/Enforceability. Except as otherwise expressly provided in this Agreement, this Agreement supersedes
any and all other prior oral and/or written agreements and sets forth the entire agreement between you and the Company. No variations
or modifications hereof shall be deemed valid unless reduced to writing and signed by the parties hereto. This Agreement shall
be deemed to have been made in the Commonwealth of Massachusetts, shall take effect as an instrument under seal, and the validity,
interpretation and performance of this Agreement shall be governed by, and construed in accordance with, the law of the Commonwealth
of Massachusetts, without giving effect to conflict of law principles. The terms of this Agreement are severable, and if for any
reason any part hereof shall be found to be unenforceable, the remaining terms and conditions shall be enforced in full.

 

By executing this Agreement, you
are acknowledging that you have been afforded sufficient time to understand the provisions and effects of this Agreement, that
your agreements and obligations hereunder are made voluntarily, knowingly and without duress, and that neither the Company nor
its agents or representatives have made any representations inconsistent with the provisions of this Agreement. The Company encourages
you to seek the guidance of an attorney if you need assistance understanding any provision of this Agreement.

 

[Remainder
of this Page is Blank]

 

 

 

 

 

 

 

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WHEREFORE, the parties have signed
the present Agreement, which shall have an effective date upon your signing the Agreement, as set forth below.

 

 

	 	Sincerely,
	 	 
	 	 
	 	By:	/s/ George A. Eldridge
	 	 	George A. Eldridge
	 	 	Senior Vice President & CFO
	 	Date: 	September 30, 2019

 

ACCEPTED AND AGREED TO:

 

 

 

   /s/ Timothy P. Noyes                       

Mr. Timothy P Noyes

5 Brigham Road

Lexington, MA 02420

 

 

Date:     September 30, 2019               

 

 

 

 

 

 

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