Document:

NUTEX
HEALTH INC.

PARTIAL
OPTION CANCELLATION AGREEMENT

This
Stock Option Cancellation Agreement (this “Agreement”) is entered into as of December 29, 2022 (the “Cancellation Date”),
by and between Warren Hosseinion (“Executive”) and Nutex Health Inc. (the “Company”), (each, a “Party”
and collectively, the “Parties”).

RECITALS

WHEREAS,
Clinigence Holdings, Inc (“Clinigence”), the predecessor to the Company, granted Executive an option to acquire 1,900,000
shares of Clinigence’s common stock at an exercise price of $2.75 per share (the “Option”), which was approved by Clinigence’s
stockholders on March 16, 2022;

WHEREAS,
the Option was assumed by the Company on April 1, 2022 under the Amended and Restated Nutex Health Inc. 2022 Equity Incentive Plan (the
“2022 Plan”) as required under the Agreement and Plan of Merger by and amount Clinigence, Nutex Health Holdco LLC and others
(the “Merger Agreement”);

WHEREAS,
Clinigence and Executive entered into an employment agreement as of April 1, 2022 (the “Employment Agreement”), which was
continued following the merger provided for under the Merger Agreement:

WHEREAS,
Section 18 of the Employment Agreement provides for a tax gross-up payment to be made to Executive in the event that any amounts earned,
accrued or paid to him become subject to the so-called “golden parachute” excise tax under Section 4999 of the Internal Revenue
Code of 1986, as amended (the “Code”);

WHEREAS,
subsequent to the date of the stockholders approving the Option, there has been a significant decline in the stock price of the Company
such that the fair market value of a share of the Company’s common stock significantly exceeds the exercise price of the Option;

WHEREAS,
a tax gross-up payment would be payable by the Company directly to the applicable federal and state tax authorities under the Employment
Agreement if Executive retained the Option in full:

WHEREAS,
Executive, as a senior executive and holder of stock and other securities of the Company, is willing to permanently cancel and terminate
his rights to the Option solely to the extent necessary in order to avoid the Company having to make any tax gross-up payment to its
detriment given that the Option has no immediate value to him due to being underwater; and

WHEREAS,
no consideration has been paid or promised by the Company or its affiliates or Executive in order to induce the partial cancellation
of this Option as set forth in this Agreement.

NOW,
THEREFORE, the Parties hereto do hereby agree as follows as of the date set forth above:

		1.	Partial
                                            Cancellation of the Option. The Option is hereby unconditionally and irrevocably cancelled
                                            and terminated solely to the extent necessary in order to avoid assessment of the excise
                                            tax under Section 4999 of the Code (the “Excise Tax”). For avoidance of doubt,
                                            Executive shall remain entitled to exercise the Option to the extent that doing so does not
                                            result in the Excise Tax. It has been determined that the number of shares of the Company’s
                                            stock subject to the Option shall be reduced from 1,900,000 shares to 859,779 shares in order
                                            to avoid the Excise Tax.

 

		2.	Adjustment.
                                            As a result of the uncertainty in the application of Section 4999 of the Code, it is possible
                                            that the number of shares that may be purchased under the Option could be less than 859,779
                                            shares. In the event that there is a final determination by the Internal Revenue Service,
                                            or a final determination by a court of competent jurisdiction, that less shares should have
                                            been available to purchase under the Option, the Option shall be deemed cancelled ab initio
                                            solely with respect to any such excess shares and if such shares have been acquired due to
                                            a later exercise, such shares shall be treated for all purposes as a loan to from the Company
                                            to Executive which the Executive shall repay to Company together with interest at the applicable
                                            Federal rate provided in Section 7872(f)(2) of the Code.

 

		3.	Mutual
                                            Release of Liabilities. Effective as of the Cancellation Date, each Party, for itself
                                            and each of its respective successors and assigns, hereby fully and unconditionally releases
                                            and forever discharges the other Party, and their successors and assigns, of and from any
                                            and all actions, causes of action, suits, debts, obligations, claims, liabilities, and demands
                                            whatsoever that such Party has or may have in connection with or under the terms of the Option
                                            and Award Agreement. Each Party hereby covenants to the other Party that with respect to
                                            any claim or obligation released by this Agreement, it will not directly or indirectly encourage,
                                            solicit, or voluntarily assist or participate in any way in the filing, reporting, or prosecution
                                            by itself or any third party of a suit, arbitration, mediation, or claim (including a third-party
                                            or derivative claim) against the other Party relating to any such released claim or obligation.
                                            For the avoidance of doubt, in the event that the IRS seeks to impose any tax against Executive
                                            with respect to the Option in the future, the provisions of Section 18 of the Employment
                                            Agreement remain in full force and effect.

 

		4.	Miscellaneous.
                                            This Agreement may be executed in one or more counterparts, each of which shall be deemed
                                            an original but all of which shall constitute one and the same instrument. For purposes of
                                            this Agreement, use of a facsimile, e-mail, or other electronic medium shall have the same
                                            force and effect as an original signature. This Agreement constitutes the final, complete,
                                            and exclusive statement of the agreement of the Parties with respect to the subject matter
                                            hereof, and supersedes any and all other prior and contemporaneous agreements and understandings,
                                            both written and oral, between the Parties. If any provision of this Agreement is held invalid
                                            or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement
                                            will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable
                                            only in part or degree will remain in full force and effect to the extent not held invalid
                                            or unenforceable. Executive acknowledges that he has had the opportunity to review this Agreement
                                            with independent professional counsel and that he is not relying upon the Company, the Company’s
                                            attorneys or any person on behalf of or retained by the Company for any advice or counsel
                                            with respect to this Agreement. Executive further agrees to execute any further documents
                                            reasonably requested by the Company to carry out the terms and conditions of this Agreement.
                                            This Agreement shall be governed by and construed in accordance with the laws of the State
                                            of Florida without regard to conflicts of laws principles.

    	 	1	 

     

    

 

IN WITNESS
WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

EXECUTIVE

By: /s/
Warren Hosseinion

Name: Warren
Hosseinion

 

NUTEX
HEALTH INC.

By:
/s/ Jon Bates

Name: Jon
Bates, CFO

 

    	 	2ex_459609.htm

Exhibit 10.1

 

 

 

January 1, 2023

 

Via email

Eric Salzman

 

Dear Eric:

 

This letter agreement, effective as of January 1, 2023, amends and restates the employment offer letter entered into between you and Safeguard Scientifics, Inc. (“Safeguard” or the “Company”), dated December 21, 2021 (the “Prior Agreement”), in order to reflect negotiated and mutually acceptable provisions pertaining to your continued employment with Safeguard.

 

Safeguard is pleased to confirm your continued full-time employment in the position of Chief Executive Officer at Safeguard on the terms and subject to the conditions set forth in this letter agreement. You will continue in your role as the Chief Executive Officer, reporting to Safeguard’s Board of Directors (“Board”), for a twelve-month term ending on December 31, 2023 (the “Term”). You will be required to dedicate substantially all of your professional time and efforts to your position with Safeguard. At the end of the Term, your employment may be extended upon mutual agreement.

 

This letter agreement constitutes the entire agreement between you and Safeguard and supersedes the Prior Agreement, the prior employment offer letter dated October 1, 2020 by and between Safeguard and you (the “October 2020 Prior Agreement”), the prior employment offer letter dated March 30, 2020 by and between Safeguard and you (the “March 2020 Prior Agreement”) and the prior consulting agreement dated November 21, 2019 by and between Safeguard and you as managing member of SarniHaan Capital Partners LLC (the “Prior Consulting Agreement”), other than with respect to the confidentiality and indemnification provisions set forth in the Prior Agreement, the October 2020 Prior Agreement, the March 2020 Prior Agreement, the Prior Consulting Agreement and the terms of the related confidentiality agreement dated October 2, 2019.

 

Salary. The annual base salary rate associated with this position is $500,000 (i.e., $41,666.67 per month) (the “Base Salary”) and will be paid on a semi-monthly basis.

 

Equity Grants. On or about January 15, 2023 (the “Grant Date”), you will receive a restricted stock grant of 125,000 shares of Safeguard’s common stock, which will vest on a monthly basis prior to the last business day of the month over the twelve-month Term in equal monthly installments beginning in January, 2023, subject to your continued employment or service to Safeguard (the “RS Grant”). In addition, on the Grant Date, you will also receive a performance-based restricted stock unit grant representing a right to receive an additional 125,000 shares of Safeguard’s common stock which will vest and become payable based on criteria outlined in the applicable award agreement, subject to your continued employment or service to Safeguard during the Term (the “Performance RSU Grant,” and, together with the RS Grant, the “Equity Grants”). In the event of a Change of Control (as defined in the 2014 Equity Compensation Plan (the “Plan”)) during the Term, all remaining unvested Equity Grants shall accelerate and become fully vested.

 

The Equity Grants will include dividend or dividend equivalent rights (as applicable) which will accrue and/or become payable to you when the underlying shares are vested or no longer subject to forfeiture, as applicable. Should any dividend be declared and paid with respect to the shares of the Company common stock during the period between (A) the Grant Date of the Equity Grant and (B) the date on which the Equity Grant is vested or no longer subject to forfeiture, as applicable, the Company shall credit to a dividend equivalent book account the value of such dividend that would have been paid if the Equity Grant at the time of the declaration of the dividend were outstanding shares of Company common stock not otherwise subject to vesting or forfeiture and pay to you such dividends if and when such Equity Grant is vested or no longer subject to forfeiture, as applicable.

 

 

 

 

The specific terms and conditions of the Equity Grants will be set forth further in the applicable award agreement evidencing the Equity Grants and will be subject to the terms of the Plan.

 

Expense Reimbursement. You will be entitled to reimbursement for all reasonable and necessary travel and business expenses in a timely manner according to the Company policy.

 

Benefits. You will continue to be eligible to participate in Safeguard’s health, dental, vision, disability, 401(k), and other benefit plans including fringe benefits generally available to Safeguard executive employees from time to time. And, you will continue to be entitled to accrue vacation at the annual rate of three weeks of vacation per calendar year.

 

Severance Benefits. In the event Safeguard terminates your employment without “Cause” (as defined below) or you resign for Good Reason (as defined below), Safeguard will provide you the following benefits that will be the only severance benefits or other payments in respect of your employment with Safeguard to which you will be entitled. Without limiting the generality of the foregoing, these benefits are in respect of all salary and other rights that you may have against Safeguard or its affiliates.

 

If you are terminated without Cause or resign for Good Reason:

 

	 	
			●

				
			You will be paid an amount equivalent to the remainder of your Base Salary that would have been paid to you during the Term, less applicable tax deductions and withholdings. This severance amount will be paid in a lump sum within 10 days of the termination date.

			

	 	
			●

				
			The Company will pay the cost of COBRA continuation coverage with respect to medical insurance, less such co-payment amount payable by you under the terms of the Company’s medical insurance program as in effect on the date of your termination, for the balance of the Term.

			

	 	
			●

				
			All remaining unvested shares of your Equity Grants shall accelerate and become fully vested as of the termination date.

			

 

All severance-related compensation and benefits described above will be contingent on your execution of a release, in form acceptable to Safeguard in its sole discretion, which is not subsequently rescinded, of all claims against Safeguard pursuant to Safeguard’s standard employee form. You will have 21 days following your termination of employment in which to consider the release although you may execute it sooner.

 

In this letter agreement, the term “Cause” means (a) your willful failure to abide by the reasonable work-related instructions and requests of the Board of Directors during your employment and/or your failure to adhere to any written Safeguard policy in effect from time to time if you have been given a reasonable opportunity to comply with such policy or cure your failure to comply (which reasonable opportunity must be granted during the 10-day period preceding termination of this letter agreement); (b) your appropriation (or attempted appropriation) of a material business opportunity of Safeguard, including attempting to secure or securing any personal profit in connection with any transaction entered into on behalf of Safeguard; (c) your misappropriation (or attempted misappropriation) of any of Safeguard’s funds or property; or (d) your conviction of, indictment for (or its procedural equivalent), or your entering of a guilty plea or plea of no contest with respect to, a felony, the equivalent thereof, or any other crime with respect to which imprisonment is a possible punishment.

 

In this letter agreement, the term “Good Reason” shall mean the occurrence of one or more of the following, without your consent: (i) material diminution of your authority, duties or responsibilities; (ii) a diminution in your Base Salary; or (iii) any action or inaction that constitutes a material breach by Safeguard of a material provision of this letter agreement; provided, that you must provide written notice of termination for Good Reason to Safeguard within 30 days after the event constituting Good Reason first occurs, Safeguard shall have a period of 30 days in which it may correct the act or failure to act that constitutes the grounds for Good Reason and if Safeguard does not correct the act or failure to act, you must terminate your employment for Good Reason within 30 days after the end of the cure period, in order for the termination to be considered a Good Reason termination.

 

Terms of Employment, Agreements. Subject to the terms of this letter agreement, you will be an employee-at-will and subject to the arrangements described in Safeguard’s employee handbook as modified from time to time. In addition, this offer is subject to your continued compliance with the various covenants designed to protect Safeguard’s confidential information and employee and customer relationships. These provisions are contained in the Confidentiality & Intellectual Property Assignment Agreement you previously executed.

 

2

 

 

Indemnification and D&O Insurance. Safeguard will indemnify you and hold you harmless in connection with your duties to the fullest extent provided by Safeguard’s bylaws and applicable law and will cover you under directors’ and officers’ liability insurance in accordance with its terms both during and, while potential liability exists, after the Term in the same amount and to the same extent as the Company covers its other officers and directors.

 

Miscellaneous. This letter agreement and the other agreements referred to herein contain the entire agreement between the parties hereto and supersede any and all prior agreements and understandings concerning your employment by Safeguard. This letter agreement shall not be altered or otherwise amended, except pursuant to an instrument in writing signed by each of the parties hereto. In the event that any provision of this letter agreement is determined to be partially or wholly invalid, illegal or unenforceable in any jurisdiction, then such provision shall, as to such jurisdiction, be modified or restricted to the extent necessary to make such provision valid, binding and enforceable, or if such provision cannot be modified or restricted, then such provision shall, as to such jurisdiction, be deemed to be excised from this letter agreement. This letter agreement will bind the heirs, personal representatives, successors and assigns of both you and Safeguard, and inure to the benefit of both you and Safeguard, and to your heirs, successors and assigns, except that the duties and responsibilities of you are of a personal nature and shall not be assignable or delegable in whole or in part by you. This letter agreement may be executed in any number of counterparts, and each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement. This letter agreement shall be governed by and construed and enforced in accordance with the laws of the Commonwealth of Pennsylvania applicable to contracts made and performed wholly therein without regard to rules governing conflicts of law.

 

Compliance with Section 409A of the Code.

 

Compliance. This letter agreement will be interpreted to avoid any penalty sanctions under Section 409A of the Code. If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under Section 409A, then such benefit or payment will be provided in full at the earliest time thereafter when such sanctions will not be imposed. For purposes of Section 409A of the Code, all payments to be made upon a termination of employment under this letter agreement may only be made upon a “separation from service” within the meaning of such term under Section 409A of the Code, each payment made under this letter agreement will be treated as a separate payment and the right to a series of installment payments under this letter agreement is to be treated as a right to a series of separate payments. In no event will you, directly or indirectly, designate the calendar year of any payments to be made to you under this letter agreement. All reimbursements and in-kind benefits provided under this letter agreement will be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during your lifetime (or during a shorter period of time specified in this letter agreement), (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

Payment Delay. Notwithstanding any provision in this letter agreement to the contrary, if at the time of your separation from service with Safeguard, Safeguard has securities which are publicly traded on an established securities market and you are a “specified employee” (as defined in Section 409A of the Code) and it is necessary to postpone the commencement of any severance payments otherwise payable pursuant to this letter agreement as a result of such termination of employment to prevent any accelerated or additional tax under Section 409A of the Code, then Safeguard will postpone the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to you) that are not otherwise paid within the short-term deferral exception under Section 409A of the Code and are in excess of the lesser of two times your then-annual compensation or (ii) the limit on compensation then set forth in Section 401(a)(17) of the code, until the first payroll date that occurs after the date that is six months following the your “separation from service” with Safeguard (as defined under Section 409A of the Code). If any payments are postponed due to such requirements, such postponed amounts will be paid in a lump sum to you on the first payroll date that occurs after the date that is six months following your “separation from service” with Safeguard. If you die during the postponement period prior to the payment of the postponed amount, the amounts withheld on account of Section 409A of the Code will be paid to the personal representative of your estate within 60 days after the date of your death.

 

3

 

 

We trust you will continue to enjoy the challenges and opportunities of working in a dynamic environment, and look forward to a mutually rewarding association.  If these terms are agreeable, please signify your acceptance below. If there are any other questions, please do not hesitate to contact me.

 

Sincerely,

 

/s/ Joseph M. Manko, Jr.

 

Joseph M. Manko, Jr.

Chairman of the Board of Directors

 

 

Agreed and accepted: /s/ Eric Salzman                                    

Eric Salzman                                             

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00351-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00351-of-00352.parquet"}]]