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CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETED ASTERISKS [*], HAS BEEN OMITTED PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED BECAUSE IT IS BOTH (I) NOT MATERIAL and (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED

February 26, 2021 
Ms. Morgan Fields
[*]
[*]

Dear Morgan:
This will confirm that, effective March 1, 2021 you have agreed to occupy the position of Vice President of and Accounting for Advanced Emissions Solutions, Inc. ("Company"). You will subsequently be appointed as a 16b Officer on April 1, 2021. You will occupy the Vice President of Accounting position for a period of up to one (1) year, subject to renewal, and will report to the Interim President and CEO.
Please review, sign, and return a copy of this letter via email to Lorraine Lang, Vice President of Human Resources, at [*].
The specific terms of your position:
1.Compensation and Benefits
1.1Your salary will be $215,000.00 annualized and payable in accordance with the Company’s normal payroll procedures and subject to applicable withholdings ("Base Salary"). You will participate in any benefit plans and programs offered by the Company to similarly situated employees subject to eligibility requirements under such plans and programs. The Company retains the right to modify benefits and salary from time to time, as it deems necessary.
1.2You will be eligible for a bonus under the Company’s Short-Term Incentive Plan. The bonus target will be 40% of your Base Salary and will be prorated to match your time employed with the Company. You must be actively employed in the Vice President of Accounting position until being released by the Company without cause in order to be eligible for the bonus.
1.3You will be eligible to participate in the Company’s stock grant program, per the approved schedule. Your grant will be 40% of your annual base salary; 1/3 of the 2021 grant will vest upon 1 year of service.
2.Termination
2.1For Cause. The Company may terminate your employment at any time for "cause," effective immediately upon written notice to you. As used in this Section 2, "cause" shall be limited to:
(a)Any act of fraud, dishonesty or embezzlement against the Company or any customer, employee, or vendor
(b)Refusal or failure by Employee to satisfactorily perform those duties which have been reasonably requested or assigned; and/or 
(c)Any conduct which violates federal, state, or local law or the Company’s policies and procedures
2.2Termination by Employee. You may, at your option, terminate employment upon providing 30 days written notice to the Company. You agree to faithfully perform your duties during the 30-day period, and further agree that you will only leave during the notice period if the Company mutually consents to your departure. Should you cease work at any time during the 30-day period, you will only be paid through your last date of service. Should the Company, at its discretion, waive any portion of the 30-day notice 

period and ask you to leave employment, it will pay your salary through the end of the 30-day period. Otherwise, there will be no severance payment obligations with any termination initiated by you.
2.3There will be no severance payment obligation upon termination of your employment.
3.Protection of Confidential Information
In the course of providing services to the Company, you have and will continue to come into contact with many confidential affairs of the Company, its affiliates, clients and partners, including without limitation information relating to the Company’s services, business plans, business acquisitions, processes, research and development methods or techniques, training methods and other operational methods or techniques, quality assurance procedures or standards, operating procedures, files, plans, specifications, proposals, drawings, charts, graphs, support data, trade secrets, future product concepts, supplier lists, supplier information, purchasing methods or practices, distribution and selling activities, consultants’ reports, marketing and engineering or other technical studies, maintenance records, employment or personnel data, marketing data, strategies or techniques, financial reports, budgets, projections, cost analyses, price lists, formulae and analyses, employee lists, customer records, customer lists, customer source lists, proprietary computer software, and internal notes and memoranda relating to any of the foregoing (collectively, "Confidential Information"). During your employment and subsequent to its termination for any reason, you agree you will keep secret all Confidential Information, and not disclose same to anyone outside of Company, either during or after your employment with Company, except with Company’s written consent; and you will not use such Confidential information or materials containing or relating to Confidential Information, or any Company matters, except during your employment, on the Company’s behalf, as directed by the Company. You further agree to deliver promptly to Company on the date of termination of your employment, or at any time Company may so request, all memoranda, notes, records, reports, and other documents (and all copies thereof) relating to Company's and its affiliates’ businesses which you may then possess or have under your control.
3.1You may have certain rights under the Defend Trade Secrets Act of 2016, Pub. L. 114-153. An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that: (A) is made
(i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual: (X) files any document containing the trade secret under seal; and (Y) does not disclose the trade secret, except pursuant to court order.

If you have any questions, feel free to contact me, Lorrie Lang, at [*]. We look forward to you assisting the Company during this time period.
-2-
 

Sincerely,
												
	/s/ Lorraine Lang
			
	Lorraine Lang			
	Vice President of Human Resources			
			AGREED TO AND ACCEPTED:
			
				
			By:	/s/ Morgan Fields
				Morgan Fields
			Date:	February 26, 2021
				

-3-bgfv-ex42_541.htm

Exhibit 4.2

DESCRIPTION OF THE REGISTRANT’S COMMON STOCK
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934

The following description of our Common Stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Amended and Restated Certificate of Incorporation (the “certificate of incorporation”) and our Amended and Restated Bylaws (the “bylaws”), each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.2 is a part. We encourage you to read our certificate of incorporation and our bylaws for additional information.

Authorized Capital Stock

Our authorized capital stock consists of 50,000,000 shares of common stock, par value $0.01 per share (“common stock”), and 3,000,000 shares of preferred stock, par value $0.01 per share (“preferred stock”). The outstanding shares of our common stock are fully paid and nonassessable.  There are no shares of preferred stock currently outstanding.

Voting Rights

Each share of our common stock entitles its holder to one vote on all matters on which holders are permitted to vote, including the election of directors.  Our bylaws require that in an uncontested election, a director nominee will be elected only if the number of shares voted for his or her election exceeds the number of shares voted against the election.  

Dividend Rights

Subject to preferences that may be applicable to any outstanding shares of our preferred stock, the holders of our common stock are entitled to receive dividends when, as, and if declared by our board of directors out of funds legally available for that purpose.

Liquidation Rights

Upon liquidation, subject to preferences that may be applicable to any outstanding shares of our preferred stock, the holders of our common stock will be entitled to a pro rata share in any distribution to stockholders.

Other Rights and Preferences

The holders of our common stock are not entitled to any preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to our common stock.

NASDAQ Listing

Our common stock is listed on the NASDAQ Stock Market under the symbol “BGFV.” The transfer agent and registrar for the common stock is Computershare, Inc.  

 

Exhibit 4.2

Preferred stock

Our board of directors has the authority, without action by our stockholders, to designate and issue preferred stock in one or more series and to designate the rights, preferences and privileges of each series, which may be greater than the rights of our common stock. It is not possible to state the actual effect of the issuance of any shares of our preferred stock upon the rights of holders of our common stock until our board of directors determines the specific rights of the holders of preferred stock. However, the effects might include, among other things:

	
 
	
•
	
restricting dividends on our common stock;

	
 
	
•
	
diluting the voting power of our common stock;

	
 
	
•
	
impairing the liquidation rights of our common stock; or

	
 
	
•
	
delaying or preventing a change in control of us without further action by our stockholders.

No shares of preferred stock are currently outstanding. 

Effect of Certain Provisions of our Amended and Restated Certificate of Incorporation and Bylaws

Some provisions of our certificate of incorporation and bylaws contain provisions that could make it more difficult for a third party to acquire control of us.  

Those provisions, summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors.

Certificate of Incorporation and Bylaws

Our certificate of incorporation and our bylaws provide for the following:

	
 
	
•
	
Undesignated Preferred Stock. The ability to authorize undesignated preferred stock makes it possible for our board of directors to issue one or more series of preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of our company. These and other provisions may have the effect of deferring hostile takeovers or delaying changes in control of our company.

 

	
 
	
•
	
Stockholder Meetings. Our certificate of incorporation provides that a special meeting of stockholders may be called only by our board of directors, its chairman, our CEO or our president.

 

	
 
	
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Requirements for Advance Notification of Stockholder Nominations and Proposals. Our bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of our board of directors or a committee of the board of directors.

 

	
 
	
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Board Classification. Our board of directors is divided into three classes. The directors in each class are elected to serve for a three-year term, one class being elected each year by our stockholders. This system of electing and removing directors may tend to discourage a third party from making a tender offer or otherwise attempting to obtain control of us, because it generally makes it more difficult for stockholders to replace a majority of the directors.

 

 

Exhibit 4.2

	
 
	
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Limits on Ability of Stockholders to Act by Written Consent. Our certificate of incorporation provides that our stockholders may not act by written consent. This limit on the ability of our stockholders to act by written consent may lengthen the amount of time required to take stockholder actions.  

 

	
 
	
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Amendment of Certificate of Incorporation and Bylaws. The approval by holders of at least 80% of our outstanding capital stock entitled to vote generally in the election of directors is required (i) to amend our bylaws and (ii) to amend certain provisions of our certificate of incorporation, including those related to the classification of the board of directors, removal and appointment of directors, the ability to call special meetings, and action by written consent.  

 

	
 
	
•
	
Election and Removal of Directors. Our certificate of incorporation and bylaws contain provisions that establish specific procedures for appointing and removing members of our board of directors.  Under our certificate of incorporation and bylaws, vacancies and newly created directorships on our board of directors may be filled only by a majority of the directors then serving on the board of directors.  Under our certificate of incorporation, directors may be removed only for cause by the affirmative vote of the holders of 80% of the capital stock then entitled to vote at an election of directors.

 

	
 
	
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No Cumulative Voting. Our certificate of incorporation and bylaws do not provide for cumulative voting.

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