Document:

Employment Agreement with Frances Powell Hawes

 Exhibit 10.1 
 September 13, 2011 
 Ms. Frances Powell Hawes 

11309 Iris Lee Lane 
 Houston, TX 77024

 Dear Frances: 
 It has been a
pleasure getting to know you over the past several weeks and discussing your qualifications and interest in working for our Company as Chief Financial Officer. Based on our discussions, I am pleased to offer you the position of Senior Vice President
and Chief Financial Officer. 
 The following are the terms of our offer: 

 

	1)	COMPANY OF EMPLOYMENT: American Electric Technologies, Inc. (“AETI”). 

 

	2)	POSITION AND TITLE: Senior Vice President and Chief Financial Officer. 

 

	3)	REPORTING TO: President and Chief Executive Officer. This position also has adjunct reporting relationship to the Audit Committee of the Board of Directors.

  

	4)	CLASSIFICATION: Full-time, Level 1 employee. 

  

	5)	 GENERAL JOB RESPONSIBILITIES: To provide management and leadership of all company financial operations, accounting and associated administrative
functions which include financial operations, controls, and support to Company business units. Responsibilities also include statutory and regulatory compliance associated with the SEC, NASDAQ, federal, state and local government requirements
including related audits and public filings and disclosures. The CFO is also subject to other duties as may be assigned from time to time by the CEO or provided for in the CFO .job specification which has been provided to you. 

 

	6)	COMPENSATION: The following are the elements of your compensation plan: 

 

	 	a.	Annual Salary: $176,820 paid semi-monthly 

  

	 	b.	Cash Bonus: Eligible for an annual cash bonus of $82,500 based on achievement of mutually agreed upon personal and corporate objectives. This bonus is prorated
for 2011 based on your employment starting date and is guaranteed for 2011. This bonus is uncapped. The cash bonus is paid in Q1 2012. You must be employed by the Company at that time to receive any bonus. Your management objectives for the
remainder of 2011 include company performance versus plan, and achievement of personal/department objectives. 

  

	 	c.	Annual Retention Bonus: In addition to your annual salary, you will receive a guaranteed annual retention cash bonus of $20,000. This annual retention bonus will
be paid on the anniversary of your start date and you must be employed by the company on that date to be eligible for that retention bonus. 

  
 1 

	 	d.	Annual Equity Bonus: In addition to the cash bonus, you are also eligible for an annual equity bonus of 20,000 Restricted Stock Units (RSU). Twenty percent
(20%) of the RSU bonus is guaranteed. The remaining 80% is variable based on the same mutually agreed upon personal and corporate objectives as the annual variable cash bonus described above. As is the case of the cash bonus this equity bonus
is uncapped. The RSU bonus is prorated for 2011 based on your employment start date. The RSU bonus is subject to a four year (4) vesting schedule (see plan attached). The RSU bonus is subject to approval by the Compensation Committee of the
AETI Board of Directors. The RSU bonus price is set at grant time according to the Company’s equity plan. 

  

	 	e.	ACHIEVEMENT BONUS: In addition to the annual cash and equity bonus plans. the Company also agrees to grant you an additional 40,000 RSU based on the attainment
of the following company achievements (all according to GAAP): 

  

	 	i.	Revenue achievements: You will receive 5,000 RSU when AETI achieves $100 million in annual revenues, when AETI achieves $150 million in annual revenues and when AETI
achieves $200 million in annual revenues. 

  

	 	ii.	EBITDA achievements: You will receive 5,000 RSU when AETI achieves annual EBITDA of $5 million, when AETI achieves annual EBITDA of $7.5 million and when AETI achieves
annual EBITDA of $10 million. 

  

	 	iii.	Liquidity event: You will receive 5,000 RSU when AETI has a liquidity event resulting in existing shareholders being able to liquefy $5 million of equity at a price of
at least $6/share or when the AETI average daily trading volume averages over 50,000 shares per day at a price of at least $6/share for six (6) consecutive weeks. 

 

	 	iv.	Stock price: You will receive 5,000 RSU when AETI stock reaches $13.50/share and stays above that level for six (6) consecutive weeks. 

 

	 	f.	AUTOMOBILE ALLOWANCE: Eligible for an executive car allowance of $700 per month. 

 

	 	g.	COMPANY BENEFITS: Upon meeting eligibility requirements, you will be offered the standard Company employee benefits which include medical insurance, 401(k)
retirement program, Employee Stock Purchase Plan, and mobile telephone reimbursement policy according to the terms of the current Company policies and procedures. 

 

	 	h.	VACATION: You will be granted one week of vacation through 12/31/2011, and the company will provide you with flexibility related to the birth of your grandchild.
Effective January 2012 you are eligible for three (3) weeks of vacation per year. Vacation time shall be taken within the one calendar year from the time it is earned. Our Company policy does not permit carry-overs or buy outs of unused
vacation time. 

  

	 	i.	SPECIAL SEVERANCE: In the event you are terminated during the first twelve (12) months of employment for other than cause or disability, AETI agrees to
provide you a severance package equal to six (6) months of your then current base salary and will reimburse your COBRA medical insurance costs, if elected, for you and your family for up to six (6) months after termination. Such severance
is paid on a monthly basis and ceases upon your commencement of other employment. 

 In the event there is a change of control/acquisition resulting in your
termination, a substantial reduction of your responsibilities, or necessitates commuting outside of the Greater Houston area, i.e., excessive travel distance, you will be entitled to a severance package equal to six (6) months of your then
current base salary and reimbursement of your COBRA medical insurance costs, if elected, for you and your family for up to six (6) months after the change-of control. In addition, you will receive a lump sum payment equal to one year’s
salary and expected on target cash bonus, plus forward vesting of any annual unvested stock grant previously granted. 
  

	 	j.	CONFIDENTIALITY: You are required to keep confidential all compensation matters. 

 

	7)	SUBSTANCE ABUSE TESTING AND PHYSICAL EXAMINATION: All applicants are required to undergo Substance Abuse Screening and Physical examination prior to commencement
of work with the company. Failure to pass the substance abuse screening or physical examination will result in the withdrawal of the employment offer. 

  

	8)	EVALUATION PERIOD: All employees are subject to successfully completing an initial ninety-day (90) evaluation period at which time your performance will be
evaluated. 

  

	9)	EMPLOYMENT-AT-WILL: All employment with the Company is employment at-will. Consequently you have the right to terminate your employment at any time for any
reason, and the Company retains the same right. Your tenure in this position is dependent upon your individual performance as well as other factors such as business conditions. 

 

	10)	IMMIGRATION REFORM AND CONTROL ACT: The Immigration Reform and Control Act of 1986 requires all employers to hire only American citizens and resident aliens who
are authorized to work in the United States. Therefore the Company will verify your eligibility for employment. A list of acceptable documents needed for presentation on the first day of employment can be found in your new hire documents. If you do
not have any of these required documents, you must give evidence of having applied for them in order to satisfy the terms of the Act. Without the aforementioned documents the Company cannot permit you to begin your employment.

 Frances, I look forward to having you as a key member of the team and to building our business together. If you accept these
terms, please sign and date two copies of this letter and return one signed a copy to me to consummate your employment with the company. 

Sincerely, 
 s/ Charles Dauber 

President and Chief Executive Officer 
 American
Electric Technologies, Inc. 
 I agree to employment by AETI on the foregoing terms. 
 s/ Frances Powell Hawes                    Date: 9/14/11Employment Offer Letter

 Exhibit 10.1 
 

 
 August 29, 2011 
 Graham Miao, Ph.D. 
 7 Beth Court 
 Randolph, NJ 07869 
  

	Re:	Employment Offer 

 Dear Graham:

 Delcath Systems, Inc. (“Delcath” or “Company”) is pleased to offer you the position of Executive Vice President, Chief
Financial Officer at the New York, NY location of Delcath. This position reports directly to the Chief Executive Officer. Your start date is September 26, 2011. This letter is written to confirm the details of our offer to you. 

The terms of your employment offer include the following: 
  

	1.	Your initial rate of base salary will be paid at an annualized rate of $325,000 per year. Your base salary will be reviewed periodically and may be increased or
decreased. The base salary is intended to compensate you for all hours worked. Compensation and benefits are subject to applicable taxes, deductions, and withholdings. 

 

	2.	You will also be eligible to earn an annual performance bonus based upon the achievement of annual performance goals according to the terms of the Company’s annual
incentive plan. Your annual incentive target bonus will be up to 40% of your gross annual base salary. For the calendar year ending December 31, 2011, your annual incentive target bonus opportunity will be pro-rated to reflect the period of
your employment with the Company in 2011. 

  

	3.	 On your first day of employment with the Company, you will be granted a stock option to purchase 100,000 shares of the Company’s common stock at a
price per share equal to the closing price on the date of grant (“Option”). The Option will be granted under and subject to the 2009 Stock Incentive Plan (“2009 Plan”) and shall be subject to the terms of the 2009 Plan and such
further terms and conditions as set forth in a written stock option grant letter to be provided by the Company to you to evidence the Option. The Option will vest in three (3) equal installments (1/3 each) over a three (3) year period on
the first, second and third anniversary of your employment start date. The Option shall 

			
	Graham Miao, Ph.D.	 	Page | 
2

	August 29, 2011	 	

  

	 	
vest in full and become immediately exercisable in the event of a Change of Control (“COC”) as defined in the 2009 Plan if the Option has not otherwise already expired or been
terminated. The Option will be a non-qualified option and is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Internal Revenue Code. 

 

	4.	On your first day of employment with the Company you will also be granted 25,000 shares of restricted stock (the “Restricted Stock Award”). The Restricted
Stock Award shall be granted under the Company’s 2009 Plan and shall be subject to the terms of the 2009 Plan and such further terms and conditions as set forth in a written restricted stock agreement to be provided by the Company to you to
evidence the Restricted Stock Award under the 2009 Plan. The Restricted Stock Award will vest in three (3) equal installments (1/3 each) over a three (3) year period on the first, second and third anniversary of your employment start date.
The Restricted Stock Award shall vest in full in the event of a COC as defined in the 2009 Plan if the Restricted Stock Award has not otherwise already expired or terminated. 

 

	5.	You will receive a Special One-Time Bonus of $100,000 (“Special Bonus”) payable within your first payroll cycle. If you are terminated for cause or resign
prior to the first anniversary of your date of employment, you shall be obligated to return a pro rata portion of the Special Bonus to the Company based upon the number of days of your employment with the Company prior to the date of termination
divided by 365. 

  

	6.	Effective January 1, 2012, you will be eligible to earn four (4) weeks of paid vacation annually (which will accrue on a monthly basis), according to the
terms of Delcath’s vacation policy. For the remainder of calendar year 2011, you will be eligible to earn one week of paid vacation. 

  

	7.	You will be entitled to participate in various Company benefit programs. Company benefits may be modified or terminated from time to time in the Company’s sole
discretion. At present, you will be eligible for the following Company benefits, subject to the terms and conditions of the applicable plans or policies: 

  

	 	a.	Health and Dental insurance; 

  

	 	b.	Life, Accidental Death and Dismemberment, Short and Long Term Disability insurance; 

 

	 	c.	Participation in the Company’s 401K retirement savings plan; 

  

	 	d.	Participation in the pre-tax transit program, if available; 

  

	 	e.	 Participation in a Flexible Spending Account. 

			
	Graham Miao, Ph.D.	 	Page | 
3

	August 29, 2011	 	

  

	 	
In case of a conflict between any benefit described anywhere in this agreement and the applicable plan or policy, the terms of the applicable plan or policy will control.

  

	8.	Delcath will provide you with temporary housing assistance in New York City not to exceed $3,500 per month for up to twelve (12) months from the start date of your
employment. This amount will be grossed up to cover the applicable taxes. You will be responsible for any rent in excess of $3,500 per month and all other expenses associated with temporary housing. You will also be responsible for identifying and
selecting your apartment and will submit monthly statements to the Company to obtain rent reimbursement. 

  

	9.	Your employment will at all times be subject to Delcath’s policies and procedures as in effect from time to time. 

 

	10.	The Company may terminate your employment at any time and for any or no reason, with or without cause or advance notice, by giving you written notice of such
termination. Similarly, you may terminate your employment with the Company at any time, for any or no reason, upon fourteen (14) days written notice to the Company, during which time you shall provide reasonable transition assistance to the
Company. Your employment with the Company will be as an employee “at will”. As such, no written or verbal statement will be construed to create a real or implied contract of continued employment. 

 

	11.	Notwithstanding the at-will nature of the employment relationship, if you voluntarily resign or your employment is terminated for “cause”, all compensation
and benefits will cease immediately. Additionally, you will receive no additional payments from the Company other than your accrued base salary and accrued and unused vacation benefits earned through the date of your termination.

  

	12.	If the Company terminates your employment without “cause”, you will be entitled to the following: 

 

	 	a.	 severance payments equal to your annual base salary for twelve (12) months (“Severance Payment”), paid in equal installments over the
course of the 12-month period following your employment; provided, however, that in order to receive the Severance Payment and the other benefits described in Sections 12 b. and 12 c. below, you will be required to execute and not rescind a general
release in favor of the Company in a form acceptable to the Company. As used in this agreement, “cause” shall mean, as reasonably determined by the Company based on the information then known to it, that one or more of the following has
occurred: (1) you have committed a crime punishable as a felony; (2) you have engaged in fraud, dishonesty, gross negligence, or other misconduct, including but not limited to use of controlled substances; (3) you have failed to
perform or uphold your responsibilities under this agreement or comply with reasonable directives of the Board; or (4) you have materially breached this agreement or any other agreement with the Company, including but not limited to the
Confidentiality and Restrictive 

			
	Graham Miao, Ph.D.	 	Page | 
4

	August 29, 2011	 	

  

	 	
Covenant Agreement; (5) you have violated a written Company policy, including but not limited to violation of the Code of Ethics; or (6) you have engaged in conduct that reflects poorly
upon you or the Company. 

  

	 	b.	continuation of the group health, dental, vision, and prescription drug coverages in which you are enrolled at the time your employment terminates with the Company,
pursuant to the continuation coverage requirements of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”); Company agrees to subsidize 100% of the cost of such COBRA coverage until the twelve month anniversary of the date upon
which your employment with the Company terminates. 

  

	 	c.	to the extent the date of your termination of employment occurs after the close of a calendar year but before the bonus payment date for such year, you shall be
eligible to receive any annual incentive bonus award for the completed calendar year to the extent you have earned such award based upon the achievement of objectives in accordance with the terms and conditions of the Company’s annual incentive
plan. 

  

	13.	This offer is conditioned upon your acceptance and agreement to the enclosed Confidentiality and Restrictive Covenant Agreement. Please sign both copies of the
Confidentiality and Restrictive Covenant Agreement and return them to me for signature on behalf of Delcath. 

  

	14.	On your first day, you will be required to complete the U.S. Government Eligibility form (Form I-9) and provide documents that verify your identity and employment
eligibility. Enclosed is a copy of the documents that may be provided to establish your right to work in the United States. 

  

	15.	This agreement is governed by and will be construed in accordance with the laws of the State of New York. The parties agree that any action relating to this agreement
will be instituted and prosecuted exclusively in a federal or state court located in the State of New York, New York County. Delcath and you irrevocably consent to submit to the personal jurisdiction of the state and federal courts of New York and
agree not to bring any action relating to this agreement in any other court. 

  

	16.	When signed by you, this offer letter will become a legally binding agreement. This agreement (including the Confidentiality and Restrictive Covenant Agreement, the
Stock Option grant letter and the Restricted Stock grant letter referred to above) contains the entire agreement relating to the subject matter hereof. No modification, discharge or waiver of this agreement will be binding on Delcath unless agreed
to in writing signed by an officer of Delcath. This agreement automatically will inure to the benefit of Delcath, its successors and assigns. 

 We are pleased that you will be joining Delcath and are confident your skills and talents will become valued assets to our organization. If you agree with the terms outlined above, please sign below where
indicated whereupon this letter will become a binding agreement. Please 

			
	Graham Miao, Ph.D.	 	Page | 
5

	August 29, 2011	 	

  

 
return the original to my attention by September 2, 2011, along with the two signed copies of the Employee Confidentiality and Restrictive Covenant Agreement. 

We look forward to having you join our team. 
  

	
	Sincerely,
	
	     

	Peter Graham
	EVP, General Counsel &
	  Global Human Resources

 I, Graham Miao, Ph.D., agree and accept this offer of employment with Delcath Systems, Inc. 

 

					
	 

	 		 	Date: 8/31/11
	(Signature)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]