Document:

Exhibit 10.4

 

EMPLOYMENT AGREEMENT

 

This employment agreement (the “Employment Agreement”)
is entered into on this day between

 

Neonode Inc. a Delaware Corporation, Storgatan 23 C, 114 55
Stockholm (“Neonode”); and Urban Forssell, personal identity no. [***], address [***]. (Employee)

 

		1	EMPLOYMENT,
TERM AND POSITION

 

		1.1	The Employee is hereby employed as CEO (“Position”)
at Neonode.

 

		1.2	The employment shall commence latest on January 1,
2020 (“Commencement Date”). The employment shall last until further notice.

 

	1.3	As from the Commencement Date, the Employee’s employment is governed by the terms and conditions of this Employment Agreement between the parties. This Employment Agreement overrules and supersedes all previous agreements between the parties.

 

	1.4	The Employee’s place of work is the Stockholm office or such other locations in Sweden or abroad where Neonode conducts business from time to time. In order to safeguard Neonode’s interests in the best way, the Employee is expected to travel within as well as outside Sweden as an important part of the employee duties. No further reimbursement is paid for the performance of the duties in addition to what is set out in this Employment Agreement.

 

	2	DUTIES AND RESPONSIBILITIES

 

	2.1	The Employee shall during the employment diligently and faithfully perform such duties and responsibilities and exercise such powers as may from time to time be assigned to the Employee. The Employee is obligated to perform the Employee’s obligations in accordance with the Board and Management guidelines (attachment A) issued from time to time by Neonode’s Board of Directors.

 

	2.2	For the purpose of this Employment Agreement, a company is considered to be an “affiliated company” if it is a legal entity that either directly or indirectly controls, or is controlled by, Neonode.

 

	3	LOYALTY

 

This Employment Agreement is based on the mutual loyalty
and trust between the parties. The Employee shall in all situations safeguard and promote Neonode’s and its affiliated companies’
interests as well as devote the entire Employee’s working hours to Neonode. Without the prior written approval of the management,
the Employee may not engage, either directly or indirectly, in any other professional or commercial business, regardless of whether
said business activity competes with Neonode’s business or not. The foregoing shall not, however, prevent the Employee from
owning or investing in financial instruments listed on a Swedish or foreign stock exchange.

 

	4	REMUNERATION AND OTHER BENEFITS

 

	4.1	The Employee is entitled to a gross monthly salary amounting to SEK 175,000 per month. The salary is paid in accordance with Neonode’s prevalent payment routines. The gross monthly salary will be reviewed on an annual basis. Neonode is under no obligation to award an increased salary following a salary review. There shall be no review of the salary after notice has been given by either party to terminate the employment.

 

	4.2	The parties acknowledge that the Position may require overtime work in relation to which no additional compensation will be paid. Overtime work has been taken into consideration, inter alia, when determining the salary level and other benefits according to this Employment Agreement.

 

Certain personally identifiable information, marked by
brackets as [***], has been omitted from this exhibit pursuant to Item 601(a)(6) under Regulation S-K.

 

     

     

    

  

	4.3	In addition to the payments set out in Clauses 4.1 above, the Employee is entitled to receive a yearly bonus during 2019 and in each subsequent year up to a maximum of 50% of his total yearly salary based on his performance as CEO and the financial performance of Neonode.

 

	4.4	The Employee is entitled to preventive health care allowance (Sw. friskvårdsbidrag) in accordance with Neonode’s from time to time applicable health care allowance policy. 

 

	4.5	The Employee is not, in addition to what is stipulated in this Employment Agreement, entitled to any additional remuneration for the Employee’s duties.

 

	5	PENSION AND INSURANCE

 

	5.1	The Employee is entitled to pension and insurance benefits in accordance with Neonode ́s policy as applicable from time to time.  The Company will make a pension provision for the CEO of 25% of the monthly base salary.

 

	 	In addition to Clause 5.1 above, Neonode undertakes to supply occupational group life insurance (Sw. Tjänstegrupplivförsäkring), industrial (occupational) injury insurance (Sw. Trygghetsförsäkring vid arbetsskada), disability pension insurance (Sw. Sjukpensionsförsäkring) according to ITP and work travel insurance.

 

	6	HOLIDAY

 

The Employee is entitled to thirty (30) days of paid
holiday per annum. Holiday shall be taken after agreement with Neonode’s Chairman of the Board of Directors and in accordance
with Neonode’s policies applicable from time to time. The calculation of holiday pay is made in accordance with the provisions
under the Swedish Annual Leave Act (Sw. Semesterlagen (1977:480)). The Employee is entitled to holiday in advance (Sw.
förskottssemster). Neonode is entitled to offset holiday pay made in advance against salary and accrued holiday pay at
the termination of employment in accordance with the Swedish Annual Leave Act.

 

	7	SICK PAY

 

In the event of sickness, the Employee shall be entitled
to sick pay in accordance with Swedish statutory requirements, with the exception that the Company will compensate the employee
for the difference between the compensation from the Swedish insurance system (Försäkringskassan”) and 75% of the
salary from day 15 up to day 90 after the sick leave occurred.

 

	8	EXPENSES

 

The Employee shall, upon submission of appropriate
receipts, receive reimbursement for reasonable and pre-approved out-of-pocket business expenses properly incurred by the Employee
in connection with the Employee’s duties. Neonode will also reimburse the Employee for any reasonable business travel expenses
which the Employee incurs in connection with the Employee’s duties, subject to and in accordance with the from time to time
applicable business travel policy (or equivalent), or, where applicable, in accordance with a specific agreement to be agreed
upon by Neonode and the Employee. Reimbursement is subject to the Employee providing Neonode with appropriate receipts and/or
invoices.

 

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	9	PERSONAL DATA AND IT SECURITY

 

	9.1	The Employee confirms that Neonode has informed the Employee of the principles governing Neonode’s processing employees’ personal data in accordance with the Personal Data Act (1998:204) ( Sw. Persondatalagen, PUL) and that the Employee has given consent thereto.

 

	9.2	The Employee undertakes to comply with Neonode’s, and its affiliated companies’, from time to time applicable policies regarding the use of Neonode’s (and its affiliated companies’) computers, e-mail system, Internet services and software programs. The Employee is aware that Neonode has full access to all files, e-mail correspondence and document handling systems as well as full access to all Internet usage which is stored in Neonode’s IT system.

 

	10	INTELLECTUAL PROPERTY RIGHTS

 

	10.1	Without any additional compensation, Neonode is the sole owner of all rights (and has the exclusive right of disposition to all rights), including but not limited to all intellectual property rights, to any results and material made, designed or produced by the Employee within the frame of the Employee’s employment. Accordingly, Neonode is entitled to modify and/or further develop any results, material or intellectual property rights as well as to transfer or license the rights to such results, material or intellectual property rights to third parties.

 

	10.2	The Employee is obliged to and agrees to support and procure that Neonode, at any time during the employment or after its expiration, can fully profit from the rights relating to Clause 10.1 above. Accordingly, the Employee is, inter alia, obliged to prepare any documentation which Neonode, at its sole discretion, deems necessary or desirable in order to protect, register and/or maintain Neonode’s rights according to Clause 10.1 above, including but not limited, where necessary, to transfer (without the right to any additional compensation) any such rights to Neonode.

 

	11	TERMINATION

 

	11.1	The employment may be terminated with a six (6) months’ notice from the Employee’s side and with a twelve (12) months’ notice from Neonode’s side, during which time the employee are entitled to receive his monthly salary. The board have however the right to exempt the employee from his position during the termination period. Upon termination for cause, the employee shall not receive any severance.

 

	11.2	The Employee acknowledges that the Employee’s obligations according to Clause 10 (Intellectual Property) and 12 (Confidentiality) will continue to remain in force after the expiration of this Employment Agreement, regardless of the reasons for the expiration.

 

	11.3	Upon termination of the employment or at any earlier point in time when the Employee leaves the Employee’s position, the Employee shall return any business material, reports, documents and other property (e.g. computer programs and software), including copies thereof (stored electronically or otherwise), which have been entrusted to the Employee or which have come into the Employee’s possession in connection with the employment. Such material is always Neonode’s property.

 

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	12	CONFIDENTIALITY

 

	12.1	The Employee may not make use of, transfer or otherwise disclose to a third party, neither during the employment nor after its expiration, such information regarding Neonode or its affiliated companies or regarding Neonode or its affiliated companies businesses, that Neonode wishes to remain confidential.

 

	12.2	For the purpose of this Clause 12, “information” is considered to be all information, including but not limited to information regarding products, materials, pricing, market and sales strategies, management and Neonode’s (or its affiliated companies’) customers and clients, regardless of whether the information is of technical, of commercial or of any other nature, and regardless of whether the information is documented in writing or otherwise.

 

	12.3	The prohibition in Clause 12.1 shall not, however, apply where:

 

	 	(a)	it is required by this Employment Agreement, by law or mandatory regulations that the information is disclosed, or

 

	 	(b)	the parties have agreed in writing that the information could be disclosed to a third party, or

 

	 	(c)	the information is publicly known and has come to public knowledge in any way other than by breach of the confidentiality undertakings in Clause 12.1 or any other breach of this Employment Agreement.

 

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	13	POST-TERMINATION RESTRICTIONS

 

	13.1	In order to protect the confidential information of Neonode or of any affiliated company referred to above under Clause 12 to which the Employee has access as a result of the employment, the Employee covenants that the Employee shall neither directly or indirectly, without the prior written consent from the Chairman of the Board of Directors for a period of twelve (12) months following the expiration of the employment:

 

		(a)	actively
solicit the services of or entice away from Neonode or from any of its affiliated companies or engage, whether on his own behalf
or on behalf of others, any person who is or was an executive director or a senior manager of Neonode or of any of its affiliated
companies at any time during the twelve month period immediately preceding the date on which the Employee’s employment with
Neonode terminated; nor

 

		(b)	actively
to a competing business solicit the customer of or entice away from Neonode or from any of its affiliated companies the customer
or business of any person who is or was a customer of Neonode or of any of its affiliated companies at any time during the twelve
month period immediately preceding the date on which the Employee’s employment with Neonode terminated and with whom the
Employee or one of his subordinates dealt with during the said twelve-month period; nor

 

		(c)	actively solicit employees of Neonode or any of its
affiliated companies at any time during the twelve month period immediately preceding the date on which the Employee’s employment
with Neonode terminated.

 

	13.2	In
the event of termination of the employment, the Employee undertakes not to copy or use information regarding Neonode’s operations
or otherwise utilise Neonode’s contacts and materials.

          

	14	APPLICABLE LAW AND DISPUTE RESOLUTION

 

	14.1	This Employment Agreement shall be governed by the substantive laws of Sweden

 

	15	AMENDMENTS AND MODIFICATIONS

 

This Employment Agreement may not be amended nor
modified unless agreed upon in writing and signed by the parties.

 

This Agreement constitutes the entire agreement of
the parties relating to the subject matter addressed in this Agreement. This Agreement supersedes all prior communications, contracts,
or agreements between the parties with respect to the subject matter addressed in this Agreement, whether oral or written.

 

 

 

This Employment Agreement
has been executed in duplicate and the parties have received one copy each.

 

	Date: October 20, 2019	 	Date: October 20, 2019

 

	/s/ Ulf Rosberg	 	/s/ Urban Forssell
	Ulf Rosberg	 	Urban Forssell
	Chairman of the Board of Directors	 	 
	Neonode Inc.	 	 

 

 

5Exhibit

Exhibit 4.3

DESCRIPTION OF CAPITAL STOCK

The following summarizes the material terms of the capital stock of EnPro Industries, Inc. (“EnPro,” “we” or “us”).  EnPro is a corporation incorporated under the laws of the State of North Carolina, and accordingly its internal corporate affairs are governed by North Carolina law and by its articles of incorporation and bylaws, which are filed as exhibits to our most recent Annual Report on Form 10-K.  The following summary is qualified in its entirety by reference to the applicable provisions of North Carolina law and our articles of incorporation and bylaws, which are subject to future amendment in accordance with the provisions thereof.  Our common stock is the only class of our securities registered under Section 12 of the Securities Exchange Act of 1934, as amended.
Common Stock 
Authorized Shares. We are authorized to issue up to 100 million shares of common stock, par value $0.01 per share.  
Voting and Other Rights. Subject to the rights of any holders of any class of preferred stock outstanding, holders of our common stock are entitled to one vote per share, and, in general, for routine matters a vote in which more shares are voted in favor of a matter than are voted in opposition to the matter will be sufficient to approve the matter. Directors are elected by a plurality of the votes cast, and our shareholders do not have the right to cumulate their votes in the election of directors.  
No Preemptive or Conversion Rights. Our common stock does not entitle its holders to any preemptive rights, subscription rights or conversion rights.  
Assets upon Dissolution. In the event of liquidation, holders of common stock would be entitled to receive proportionately any assets legally available for distribution to shareholders with respect to shares held by them, subject to any prior rights of any of our preferred stock then outstanding.  
Distributions. Subject to the rights of holders of any class of preferred stock outstanding, holders of our common stock will be entitled to receive the dividends or distributions that the board of directors may declare out of funds legally available for these payments. Our payment of distributions will be subject to the restrictions of North Carolina law applicable to the declaration of distributions by a corporation. Under North Carolina law, a corporation may not make a distribution if as a result of the distribution the corporation would not be able to pay its debts or would not be able to satisfy any preferential rights preferred shareholders would have if the company were to be dissolved at the time of the distribution.  
Antitakeover Provisions. Our articles of incorporation and bylaws contain various provisions that may discourage or delay attempts to gain control of us. The articles of incorporation include provisions:  
		
	•
	authorizing the board of directors to fix the size of the board between five and 11 directors and permitting the shareholders to fix the size of the board within that range only upon the vote of a majority of the shares then entitled to be voted in the election of directors;

		
	•
	authorizing only the directors to fill vacancies on the board occurring between annual shareholder meetings, including vacancies created by an increase in the size of the board, except that upon the removal of a director by the shareholders at a meeting, the shareholders may fill the resulting vacancy at the same meeting;  

1

		
	•
	permitting the removal of directors by shareholders only for cause by a vote of the holders of a majority of shares entitled to be voted in electing directors, voting as a single class;  

		
	•
	authorizing only the board of directors, an executive committee of the board of directors, our Chairman and President to call a special meeting of shareholders;  

		
	•
	requiring, for the approval of any business combination transaction with a person beneficially owning 5% or more of the outstanding shares of common stock, a vote by holders of 80% of the shares entitled to vote in the election of directors, voting as a single class, and a vote of 66 2/3%  of the shares other than shares held by the 5% shareholder, unless the business combination is approved by disinterested directors; and  

		
	•
	requiring approval by a vote of 80% of the shares entitled to be voted in the election of directors, voting as a single class, to alter any of the above provisions, except that such supermajority shareholder approvals would not be required to amend the provisions of the articles of incorporation summarized in the immediately preceding bullet point is such amendment is recommended by a majority of the disinterested directors then on the board.  

North Carolina has two takeover-related statutes: the Shareholder Protection Act and the Control Share Acquisition Act. The Shareholder Protection Act restricts business combination transactions involving a North Carolina public corporation and a beneficial owner of 20% or more of its voting stock. The Control Share Acquisition Act precludes an acquiror of the shares of a North Carolina public corporation who crosses one of three voting thresholds, 20%, 33 1/3% or 50%, from obtaining voting control of the shares unless a majority in interest of the disinterested shareholders of the corporation votes to grant voting power to the shares. Neither of these statutes applies to us because, as permitted by these statutes, we have elected not to be covered by them and have included a provision in our initial articles of incorporation reflecting that election.  
Advance Notice Requirements. Our bylaws include specific conditions governing the conduct of business at annual and special shareholders’ meetings and the nominations of persons for election as directors at annual shareholders’ meetings. Under our bylaws, any shareholder entitled to vote at an annual meeting may bring business before the meeting if the shareholder provides written notice to, and the notice is received by us, to the attention to the Office of Secretary at our principal executive offices, generally not less than 90 nor more than 120 days prior to the first anniversary of the preceding year’s annual meeting. Each notice must include:  
		
	•
	for each matter, a brief description thereof and the reasons for conducting such business at the annual meeting;  

		
	•
	the name and address of the shareholder proposing such business as well as any of the shareholders believed to be supporting the proposal;  

		
	•
	information with respect to the shareholder’s direct and indirect EnPro stock ownership interests, derivative interests, dividend and voting rights, and other rights or interests connected to the Company’s stock and updates of specified required disclosures, if necessary, as of the record date for the applicable meeting; and  

		
	•
	any material interest of such shareholders in the proposal.  

Preferred Stock 
We are authorized to issue up to 50 million shares of preferred stock, $0.01 par value per share. Our board of directors is authorized to issue preferred stock in one or more series, to fix the number of 

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shares in each series, and to determine dividend rates, liquidation prices, liquidation rights of holders, redemption, conversion and voting rights and other series terms. Our ability to issue an indeterminate number of shares of preferred stock with such rights, privileges and preferences as our board of directors may fix, as well as the existence of our shareholder rights plan, may have the effect of delaying or preventing a takeover or other change in control of EnPro. 
Our board of directors adopted an amendment to our articles of incorporation in 2002 to create a series of preferred stock designated as Series A Junior Participating Preferred Stock in connection with our adoption of the shareholder rights plan, which was established at the time of our spin-off from Goodrich Corporation in 2002 and which has expired.  No shares of Series A Junior Participating Preferred Stock have been issued, and all rights to acquire shares of Series A Junior Participating Preferred Stock under such shareholder rights plan have expired.
Transfer Agent 
The transfer agent and registrar for our common stock is Broadridge Corporate Issuer Solutions, Inc.

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